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Features of a profitable rental property

In London, more landlords than ever find that renting their property can be incredibly profitable. However, for new investors, purchasing your first buy-to-let property can be incredibly daunting. Knowing what you’re looking for is key when it comes to maximising your potential profits, ensuring the best return on your investment.

At Westcolt Surveyors, our expert team have, through many years of experience, cultivated their ability to spot a profitable rental property from a mile off, but even with expert help, it pays to know the key features you should keep an eye out for when considering buying to let.

The Local Area

Learning as much as you can about the area you plan to purchase your property in is key to increasing your profit margins. Figuring out the demographics, and therefore, the type of tenant you can expect to be dealing with, whether that should be families, students, or young professionals, should always be at the forefront of your mind, and allow you to cater to their needs by purchasing properties that meet the individual criteria for each group.

Factors such as crime rate, proximity to local amenities, and the potential for future development are all part of what you should consider when scoping out the area surrounding the property you’re considering purchasing.

Consider your Expenses

Looking into other letting rates of nearby properties, as well as tax, insurance rates, and other expenses, will help you figure out prior to purchase how much income you can expect from your potential property.

The Cost of Maintenance

You can never plan for unexpected emergencies, but a responsible landlord will make sure to put aside extra money for repairs. Whilst you can’t anticipate when or where this will happen, choosing a newer property, or one that has undergone recent renovations, will help minimise the chance of something malfunctioning and going horribly wrong.

Is It Ready to Rent?

It may be tempting to invest in a “project” property, that will require a lot of work in order to be ready to rent. Whilst some of these types of properties may help save money in the long run, and be incredibly rewarding to see to completion, they don’t allow landlords to start making money straight away, and are not always the most profitable investment on a short-term timescale.

For more advice on making the most of your rental property, or if you would like help searching for the perfect rental property, don’t hesitate to contact the Westcolt Surveyors team.

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