Creating A Profitable Rental Property
If you’re looking to invest in residential real estate to rent out a property, there are many things you can do to contribute to its profitability. Some of them cost more than others, but keeping these things in mind when buying, renovating and decorating your property could make you a lot more money in the long run. Your priorities when it comes to the property will differ depending on your target market, yet these are pretty standard ways to help you get started!
Before you jump into buying a property, it is essential that you research the area you are wanting to purchase a house in. You must consider potential deterrents such as high crime rates, loud areas and a generally messy environment. Equally, you should look out for selling points, such as good school districts, public transport and close amenities. The things that you prioritize will differ depending on your target audience, for example if you are wanting to target young professionals with a city apartment, you would look out for public transport and amenities rather than good school districts. Decide who you want to attract to the property, consider what they would look for and research areas in depth accordingly.
Make It Energy Efficient
Now that you’ve decided on a location, renovations are likely to begin. One thing that can dramatically increase the profitability of a rental property is if it is energy efficient. Prospective renters are sure to ask for the energy efficiency rating, perhaps because they are eco-friendly or more likely because they want to keep the cost of their bills to a minimum. Having double glazed windows, loft insulation and low pressure taps and shower heads will make a massive difference when it comes to the monthly cost of bills. The best thing to do is to upgrade the boiler to one that is A-rated, as heating accounts for about half of the average energy bill. Being able to tell potential renters about the implementation of various energy-saving elements during renovation will impress them. Best of all, your monthly yield will increase as you are able to charge more monthly rent for a property that will save the tenants money.
Neutral Color Palette
After any main renovations have taken place, you may start to consider decorating. There are no strict rules here, however in order to make your property as profitable as possible, it is advisable to keep the color palette neutral. If the walls, floors and fixtures are mismatched throughout the house, it will completely put off most potential renters. So, going for cream walls and wooden floors throughout the house is your best option. When it comes to fixtures such as your bathroom suite and kitchen, keep things simple again. A white bathroom suite with grey tiles and cream kitchen cupboards with a wooden countertop is the best way to go. Not only will the property look bright and clean, but it will also enable your tenants to make the place feel like home as they can bring in their own sense of style. For an added tip, install some hooks or screws into any large blank walls to enable them to easily hang wall art.
Considering the wants and needs of your potential renters should definitely not be an afterthought when it comes to buying a property. Instead, you should take time to consider what they might be looking for, and what they will find appealing, throughout the entire process. The smallest decisions could make your property much more profitable, so investing a bit more from the beginning is a good idea in order to increase your monthly yield.