Choosing for the long-term.
When choosing an investment property, it’s important to think about what tenants want rather than what you would choose for yourself. Understanding what tenants are look for and finding a property that suits their needs increases your chances of keeping it tenanted regularly and improves your long-term rental income.
Think about these three aspects when choosing your property:
1. The right location
Look for properties close to public transport, a university, local schools and shopping centres where you’re assured of an ongoing demand from students and/or families with young children.
Check with local government organisations about future plans for the location. Planned extensions and improvements will have an impact on your property appealing to tenants.
2. Family friendly
One of the first things prospective tenants search for is the number of bedrooms. This will vary from area to area. One-bedroom apartments might be great for student tenants but families will prefer two or three-bedroom properties. When it comes to bedrooms, size is important. Generally the main bedroom is large and other bedrooms are smaller. If they are too small, they will not be as appealing to tenants.
You need to consider the time periods required by different tenants. Students may choose shorter leases than families so you must be prepared for a more regular turn-over of tenants. It is important to consider the maintenance of your property if it contains garden areas. Deciding whether you will allow tenants to keep pets is also a consideration. Tenants will have preferences for these aspects.
3. What kind of bathroom?
Another feature of a property that can decide its popularity with tenants is the bathroom. Families are often looking for properties with two bathrooms to make their living arrangement easier. Single, professional tenants may be happy with a smaller room that contains a shower and basin while tenants with young children might prefer one with a bath. For some tenants, the bathroom and laundry amenities will not be of such importance.
4. Knowing the area
Researching the demographics of the area will help you determine what style of property best suits tenants’ needs. This means your property will appeal to a broader range of tenants, increasing the opportunity for you to lease out your property more regularly. You want to find a property that will bring a regular rental income with the possibility of improving your income over time.
All of these aspects will determine what style of investment property to look for. You also need to determine what kind of property best suits your financial situation. Careful selection improves your chances in obtaining the relevant loan or your purchase. It can be the starting point in determining your savings plan to put into place so you can begin your journey towards owning properties.
For assistance in determining the best kind of property for your investments needs, speak to GM Mortgage Services. We offer you guidance to ensure your success in securing the funds you need to begin or increase your investment portfolio.