Big City Buy-To-Let: Tips & Tricks For Metropolitan Property Investment
Making the decision to purchase your own buy-to-let property within a large, bustling city can be of real benefit to your portfolio, however, there are many important steps and considerations that you must bear in mind to ensure your project is a success. Renters seeking homes within a capital city are going to have far different expectations than those who opt for more rural suburban surroundings, so you must ensure that your property can meet their needs in order to attract sufficient tenants. Luckily, learning how to master the art of big city buy-to-let investment needn’t be as tricky as you might expect, as there are just a few key tips and tricks that you can utilise to make the most of your opportunity (and subsequently seek the largest profits, too!). So, if you would like to find out more, then read simply read on.
Exact Location Matters
When investing in city property, the exact location matters far more than you might expect. Suburban homes need simply be in the right neighborhood, whilst big-city property must be situated on the most exclusive, specific streets. You must identify the best locations that are near to amenities such as transport links, restaurants, grocery stores and more, as these are the most convenient, sought-after spots that tenants are searching for. Those who actually work in these hotspots will likely want to live nearby, whilst others will want to remain in the city to benefit from the many amenities described above. Take some time to identify a few potential streets and blocks that might be ideal for a new big city investment property, researching crime rates and more to get a true picture of your new neighborhood. Explore your possibilities on foot, assessing the travel time between potential properties and local transport links and other essential amenities.
Provide All Mod-Cons
When renting within a big city, you expect to benefit from all of your mod cons provided free of charge. Most people do not have belongings such as their own bed, wardrobe, washing machine, microwave or even plates and cutlery, so the responsibility is on you to provide access to all of these important features to ensure your tenants can live comfortably! You must make an effort to meet the needs of your future tenants by kitting out your investment property with all of the most essential furnishings and services, otherwise you simply won’t be able to attract the tenants you are searching for. Start off by tackling the bedrooms, providing storage space, a comfortable bed and potentially access to their own private en-suite bathroom. Having a private bathroom space for each bedroom can add considerable value to the monthly rental payment, encouraging your investment property to attract the highest possible profits for the benefit of your bank account. Always provide a lock for each bedroom to ensure each of your tenants can maintain privacy and peace of mind. In communal areas such as the kitchen, you must make an effort to kit out the space with enough cooking equipment to accommodate the number of tenants you expect to host. If your buy-to-let property has 5 bedrooms, settling on a galley kitchen with a single oven is the worst decision that you can make. Any more than 3 tenants will likely mean that you need to invest in double the furnishings and equipment, purchasing 2 fridges, 2 microwaves and so on to ensure there are sufficient accessible amenities for every resident that rents a room in your big city property. Even services such as a wireless internet connection are now a standard expectation for modern renters, so be sure to assess their needs and aim to meet them comfortably.
Market To Global Tenants
Big bustling cities like London and Los Angeles are hotspots for visitors travelling from all over the world, so there are probably hundreds of thousands of non-english speaking tenants seeking to rent a room despite the language barrier. Making the decision to market your property to global tenants is the perfect way to attract sufficient demand for your rooms, potentially even encouraging the creation of a waiting list for those who wish to move in as soon as another resident moves out. It’s so quicky and easy to use a translation service to convert your adverts into the most popular tongues (think Spanish, Italian, etc.), and the benefits that you can expect to experience as a result will make it worth your efforts. If you do wish to rent a room to someone who has not yet arrived in your country, you must approach the appropriate services to perform a property inspection report that ensures the space is right for its intended purpose. Those traveling from different countries need to prove that they have a safe, comfortable home to move to, otherwise, they may be denied access altogether.
Seek The Appropriate Certifications
Before you even think about allowing your first resident to make themselves at home, you should always seek out the appropriate certifications to ensure that you are abiding by both the law and any other guidelines that are in place in the renting market. For example, in the UK when you own a property that you wish to rent out to several different people at a time, you must apply for a specific ‘house of multiple occupation’ certifications. A normal property is built for a family, whilst a HMO must be specially designed (using the mod-cons described above) to make sure it’s comfortable for many residents to both mingle and have their own private space. Ensuring that their private space meets the minimum total area expected for single occupancy is also something you’ll want to investigate, as a housing officer will spot such a discrepancy immediately and may even close your rooms for rent if they are too small.
Purchasing your own buy-to-let property amongst the hustle and bustle of a big metropolitan city has never been so profitable when you can utilise the tips and tricks described above.