Buying a property for investment purposes is always a scary prospect. It’s a lot of money and you don’t always know the outcome.
One of the most challenging areas is the restoration process. Even once you’ve been through all the legal work and have the deed in your possession, you still have to bring the property around and ensure it is in a fit state for people to rent out.
Fortunately, that’s where this guide can help. We look at how you can transform property to increase rental yields and turn it into the investment you always wanted.
Know Your Renters
The first step is to know who you’ll be renting to. Ideally, you’ll have a specific type of tenant in mind before you begin work.
Most people getting into property rental first time aim for families. It’s a low-risk target market and often means more stable payments.
Young professionals can also work, but these turnover more often. Younger people are more likely to switch jobs or adjust their living arrangements.
Students are much more specialist but could work for you if you’re in a university town. Again, payments are almost guaranteed since they come out of student loans.
If you aren’t sure what the demand is like for rental homes in your area, ask someone. Get the low-down on the market and how it is functioning right now. Sometimes, you’ll discover that it is the wrong time to get in and that you should wait a few months before taking the plunge.
Optimise Space
The next step once you have a property you like is to optimize the space. You want every possible area to serve some sort of money-generating function.
For example, if the property has basements or attics, turn these into bedrooms. These will allow you to offer more accommodation to the people staying in the property. (This tactic is particularly helpful when renting to students since living in converted attics is something they love).
You also want to consider adding open-plan layouts. These aren’t ideal in offices, but they can work well in homes, making your property feel more spacious. Opening up the space between living rooms and kitchens is an excellent idea. It makes the property feel roomier, encouraging tenants to pay more of a premium for the privilege of living in it.
If possible, build-in storage, but it’s not essential. It just cuts down on the risk to furniture and keeps everything looking neat and tidy.
Upgrade Key Features
The next step is to use a company like SFR real estate to upgrade key features in the property. Adjusting these can attract premium renters looking for something special to support their lifestyle.
For example, adding modern kitchens and bathrooms is often the first place many landlords start. Updating and upgrading these can make a tremendous difference in how a rental property feels, even if you leave the other rooms relatively untouched.
For brownie points, you could also add high-end appliances. Again, including these in a property is risky, but they can have a profound effect on who decides to rent with you. Often, the most successful professionals want the convenience of statement appliances, like high-quality refrigerators.
Energy efficiency is another consideration. Adding things like double glazing and efficient fixings is appealing to some tenants. The vast majority simply want to save on their bills, but there is always a subset who also care about the impact living on your property might have on the environment. These individuals care more about things like LEDs and recycling options than most.
Add Furnishings That Appeal To Your Target Market
The next step is to add furnishings to the home that will appeal to your target market. You want to do this strategically, to reduce the risk of wasting money.
For example, if you know your audience is artistic, adding some wall art to the bathrooms could be an excellent idea. Or you could include a bar in the living room if you know your tenants are the sort of people who enjoy having guests over to stay. It’s little things like this that can make the entire experience so much more enjoyable.
Add Lighting
Finally, think carefully about the lighting in your rental. Even small changes to the ambiance can have a profound effect on how visitors perceive your property.
Lighting comes in all sorts of forms, but the best is recessed if you have the ability to do it. The more you can set it back, the better.
