If you’ve made the initial steps to letting your property in London, congratulations. Pitfalls and successes aside, renting property can be an enjoyable experience and a solid income generator. For those new to the game, we’ve prepared 5 key tips to letting property in London. Best of luck!
1) Attract your target tenant
Attracting your target tenant is so crucial. As a landlord, you need to have a picture in your head of who you want to be renting your property – this informs all the decisions you make going forward. Are you looking to attract students who will leave the property each year? Are you aiming to attract young professionals? Or are a family your ideal tenants? These groups have very different requirements, different expectations, and different risks associated. Before you dive into the nitty gritty, decide who you want in your property – although this may be led by the property itself!
2) Present your property accordingly
Using tip 1 as a foundation, tip 2 can help to secure your target tenants interest once they view the property. It’ll sound simple, but it’s a mistake lots of people make – ensure your property is presented appropriately for your audience. If you’re looking at students, present it as low barrier to moving in, no thrills, etc. If families are your target, space to grow and a licence to create their own story in the property is a must. Whatever your audience, and however you choose to layout the property, as a landlord you should always make sure your property is clean, meets legal requirements and has the necessary amenities in place.
3) Research your prospective tenant
As we have mentioned, getting the right tenants into your property can make the whole process much smoother. But how do you know if a prospective tenant is who they say they are? A simple questionnaire can be more than enough to separate the wheat from the chafe. Use an estate agent’s questionnaire or create your own and enquire about previous employers, income levels, previous landlords and anything else that may highlight any red flags. Do your homework, run a credit check, call their employer. Be certain that the person you are about to let to are the real deal.
4) Understand your yield
An easy way to understand how your property will generate income for you is by calculating your yield. At a base level, you can calculate your rental yield by dividing the amount you paid for the property by the amount you’ll receive in year rent. If you are using a mortgage, you’ll need to remove the mortgage costs from the amount you are getting from the rent. Also – beware of other costs that reduce returns, such as maintenance, fees, gaps in tenancy and other unforeseen events.
5) Have your property managed
Whilst managing your own property can be beneficial, having your property managed for you, especially in London, can remove the stress of the process and help you create a steady revenue stream from reliable tenants. Do you research, but a property management company can help find tenants, manage your property, renovate your interior and maximise your yield. If you want to speak to The Spaces Collective about property management in London, contact us on [email protected] or call 02038807309.