Owning a rental property has long been seen as a solid investment, but is that still the case? With the rental market skyrocketing and house prices slowing down, some landlords have become worried.
We’re here to explain why becoming a landlord is still a sound investment, and we will offer some top tips for earning the best possible price for your property.
Is becoming a landlord still a wise idea?
Becoming a landlord is still a great idea in a financial sense.
Rental income is helpful in two ways. The monetary income itself, but also the increased equity share in the home as you pay off the mortgage. This means that you will earn money each month from the rent, and also will accrue more money from a sale of the properties should you ever choose to put it on the market.
While house prices have slowed down, this is likely to be a temporary blip, with prices sure to creep back up as time goes on.
Five top tips on getting a good price for your rental property
Keep your property in a good condition
Sometimes the correct answer is the simplest one.
Prospective tenants will be able to tell if the property has been well-maintained when they are viewing it, and in a competitive rental market, you are setting yourself up for failure if you fail to keep the property to a good standard.
Research local prices
The first step to get a feel for the correct price for your property is to conduct a bit of research into the local area.
If similarly sized properties are pitching at £500 PCM, it’s safe to say that pitching your property at £1500 PCM is going to be a tough sell.
The numbers have to work for you to make a profit, but a realistic price is needed to ensure that potential tenants are interested.
Take high-quality photos
The vast majority of tenants find their new home online, so it is essential to ensure that photos of the rental property are favorable.
The extra expenditure to hire a professional photographer is often worth the cost.
Ensure the property is free of clutter
Whether in a photograph or as part of a viewing, tenants are more likely to fall in love with a property if the rooms are free of clutter.
A minimalist décor makes it easier for tenants to imagine themselves in the property, and also ensures that the space looks as large as it possibly can!
Protect against loss of rental earnings
So, you’ve found a tenant(s) for your property, and they’ve signed a contract. Job done? Not quite.
Investing in landlord insurance is a sensible method to ensure that you are protected against loss of rent.
While the vast majority of the time your tenants will pay their rent each month and that will be, there are many people struggling financially at the moment, and that means that income from your property isn’t totally secure. Being protected is essential.