Before buying a property, research the demand by exploring similar properties that are rented in your area. Seeking advice from letting and rental agents is a good idea as they can give good insight, and will have good ideas and tips. Letting agents may even know of a good property to buy.
Find out the rental from similar properties in your area to determine the expected income from the property. Then estimate the costs, so that you know your budget. A property will need some repairs and, if you decide to furnish the property, there are furnishing costs. There are also future maintenance costs, and repair costs when the tenant leaves.
When buying a house inspect the property carefully before you buy. Make sure that the roof is sound and the house is well built. You don’t want large unexpected capital costs like replacing the roof.
The costs of financing the property can be substantial, and the debt payments need to be added to the budget. And make sure there is some working capital available because you tenants often do not pay on time, and late payments can make the debt payment more difficult.
Some key ideas when repairing the property:
An idea is to use white or creams for the walls, as this allows for darker colours for the furniture. Furnishing in leather and dark colours don’t show stains and marks. In the kitchen avoid surfaces that can be marked easily. Also install splash backs for sink and cooking area to protect from grease and general dirt. Keep to the same flooring throughout so as to help rooms flow into each other. Select a good tile or laminate that is easy to maintain.
When deciding to furnish a property, here are some important considerations:
Plan carefully. Seeking advice from a letting agent and speaking to people with interior decorating skills is be good start. Perhaps you can visit a property that is a rental to get an idea of the look-and-feel. Know the expected rental from similar properties in your area, so that you know your budget. As we mentioned light walls allow for furnishing in leather and dark colours don’t show stains and marks. Selecting leather and heavy fabrics are durable and stand the test of time. Also note that good second hand furniture can be found to save on costs. Select a good inexpensive mattress as this may become stained and need replacing.
Costs can destroy the profits from the hard earned rentals. Through careful planning these costs can be managed.
Once you gone to the huge investment of time and capital to get tenants into your property, have you considered a newsletter to educate tenants on how to enjoy their rental and respect the property. I am sure other landlords would also like to send your newsletter to their tenants.