Are you a new landlord or an existing landlord looking to enhance your rental property portfolio? Either way, if you’re looking to invest further, you need to ensure that in-depth research has been completed. In this blog, we’re looking into how to choose the right location for your rental property.
As a landlord, investing in the right areas is crucial. Investing in the wrong areas can impact how much the property appeals to tenants and how much rental income you can benefit from.
Is now a good time to invest in England?
Yes, research shows that now is a great time to invest in England. Many areas are experiencing a high rental demand and strong rental yields. More recently, buy to let mortgage rates have stabilised, meaning that borrowing could be more manageable for landlords.
Landlords should carefully consider taxes and other additional costs, such as stamp duty land tax, capital gains tax and more. You will also need to ensure that all legalities have been adhered to and that you can afford mortgage payments.
Additionally, to get the most out of your rental property, you must carefully consider its location and the current market conditions. You will also need to ensure that you attract tenants who are reliable to live in the home to ensure a consistent rental income. Read our blog on how to find reliable tenants.
What to consider when choosing a location for your property investment
High rental demand
One of the most important factors to consider when choosing the perfect area is whether or not it has high rental demand.
Rental demand varies based on many factors, but the North West and the Midlands are proving to have higher rental demands right now. Make sure you research the local market and property location, as this can help to promote a consistent rental income from your buy to let property.
Identify your target market
Before you start looking at potential rental property investments, you need to establish who it is that you want to rent the home out to. For example, families are going to have different requirements when compared to students and young professionals.
There are a few aspects that tend to be universal and everybody wants, such as low crime rates, a great community feel and easy access to transport links.
High rental yields
If you want to get the most out of your investment, then you need to be doing research into areas with high rental yields. This metric can be used to assess the potential profitability of your investment, so it’s really important to work it out.
Areas in England with high rental yields include the North West, North East and Yorkshire & The Humber.
Rental yields and capital growth can be affected by many factors, including the following.
- Property prices
- High demand areas
- Nearby regeneration projects
- Property types, such as apartments or houses
Property type & condition
It’s really important that you view properties a few times before you make any decisions. This allows you to properly assess property conditions and identify any potential work or renovations that may need to be carried out.
It’s likely that you will need to make some improvements to any home, as this can help you achieve a higher rental income and attract your ideal tenants.
Select a trusted property management company
Being a landlord can be a full time job in itself if you choose to do it alone. From experience, you’re much better off working alongside a trusted letting agent who can offer advice and remain ahead of trends in the rental market. Find out more about our landlord services.
You should also check out our blog on the benefits of working with a property management company.
Other aspects tenants favour from a buy to let property
- Close to city centres
- Close to universities
- Close to good schools
- Good transport links nearby
- Good community atmosphere
- Safe areas
- Good size property with storage space
You should check out our blog on what potential tenants are looking for in rental properties to find out more.
We hope this blog has been helpful on how to choose the right location for your investment property. At Intus Lettings, we’re on hand to help with any questions you may have regarding finding the right property, organising tenancy agreements and much more. We are a nationwide letting agent with a local touch. Contact us today to see how we can help.
