So you have researched the market, chosen a promising area, done the maths, got a competitive buy to let mortgage and now it’s time to get a tenant in the property to start making a return on investment.
In an economy where it is becoming more and more difficult to obtain a mortgage many house hunters are resorting to renting, house sharing or even moving back in with the parents. This has resulted in a slow moving housing market.
Despite the fact more people are now renting throughout the UK it has become increasingly difficult to let your property quickly due to increased competition in the buy to let market. Competition is now strife between potential landlords and securing the perfect tenant has become increasingly difficult.
To reduce the risk of becoming stuck with a dormant property here is five simple but effective tips that from experience have always resulted in a successful transaction and tenancy.
1) Keep it simple
Firstly it is important to decide whether the property is going to be furnished or un-furnished. If you are going down the furnished avenue think of your potential target market and ideal tenant. Design a property to the needs and tastes of the target market and not your own.
Simple is best when it comes to furnishings and accessories in the interior. The saying less is more is more than just relevant, concentrate on quality over quantity. Quality furniture will stand the test of time and provide the property with a unique selling point. Try to avoid the purchase of furniture that is currently the latest fad and select classical designs that won’t quickly fall out of fashion.
2) Be competitive
Perform market research on properties of similar size and quality in the local areas to design a pricing policy that fits. When deciding the per calendar month cost of the property don’t just go as cheap as possible as this may attract the wrong clientele and give a perception of lower quality. Alternatively don’t over price the property if it doesn’t reflect the prestige price.
3) Choose where to advertise
Find a respectable letting agent or market the property yourself through numerous free websites. Whatever the avenue you take it is important to be proactive; it is highly unlikely a tenant will just land on the door step. Before advertising the property ensure it is in a ready to rent state otherwise you will damage the earning potential and reputation. Have the property in a perfect condition for photos to be taken, which will present a true reflection and standard to potential tenants prior to a physical viewing.
4) First Impressions
Ensure the property appeals to all of the senses first time and every time there is a viewing. Have a good deep clean especially if the previous owner was smoker or owned pets. To add to the” homey” feel of the property light some scent candles, or perform some baking in the kitchen prior to viewing. This will do nothing but add to the viewing experience. Remember the 4 senses are:
Touch
Smell
Hearing
Sight
5) Background Check
If letting the property privately it is imperative a background check is performed on the potential new tenant. Usually this will be performed by a letting agent and it includes a credit check, referral references, ID check and the details of a guarantor in the event of a miss-payment.
About the author: Chris Algar writes for thefurnituremarket.co.uk where you can find a selection of French, oak and high quality furniture.
