Building a property and renting it out is a popular trend in the world of letting. Whether it be a house or a series of flats that are built and rented out, build-to-let is now overtaking buy-to-let. So, if you are a landlord or are a prospective landlord, then it may be prudent to now take such a venture. And if you do decide to, make sure to take the points below into consideration before your venture begins.
First of all, you have to be fully aware of the task in hand. It is assumed that you already know what it takes to build a property. But do you know what it takes to build a property that people are going to want to rent? Do you know what renters in this day and age are demanding from the properties they rent? You have to be aware that you are building a property for a very specific reason. You have to be aware that you aren’t necessarily building to cater to your own tastes. Because of this, you have to do some research into what tenants want. And, according to the results of a survey conducted here, clean and comfortable interior is the highest priority for tenants. Therefore this, especially when compared to the fact that stylish interior came only fourth in the list of priorities, should be your focus rather than style. Right off the bat you should be doing all you can to ensure that the build caters to the building of a safe and hygienic property. To do so, you should consider this even when you are formulating your plans and designs. By using the architectural rendering services provided by Realspace 3D you can bring your plans and designs to life via technology. And you can do so even before the building commences. By communicating your architectural designs in this clear fashion you can be sure that you are building a safe environment from the start. There is no room for error when it comes to building a build-to-let property — if you don’t want to spend money unnecessarily, that is. There is no room for error at any stage of the process, both at the start of it and during it. Therefore you should always be aware of what is happening with the build. You should ensure that nothing changes in regards to the build — either inadvertently or intentionally — as it progresses. And, of course, in order to build a place that people will want to rent. you have to be able to afford to do so. You should always ensure you seek a quote from a professional as to how much the venture will cost. And you should then ensure that you have the funds to meet this quote.
You should however pay attention to the interior design of the property. Like with the building of the property, you have to cater to the needs of your prospective tenants and not yourself as you decorate. You have to do everything you can to help all prospective tenants be able to envisage themselves living in the property. And you should start by keeping your chosen colour scheme as neutral as possible. You should adorn the walls in a neutral colour palette. You should offer the rooms in the property as much natural lighting as possible. Basically, you should make the space seem as open, and as open to filling, as possible. You should then try to make the property fit for purpose. To do this, you’ll have to identify a particular market and work around them. For example, if you are intending to rent to young professionals, then why not provide them with a quiet office-type space that is fitted with a desk? However, when it comes to decorating, you should always set yourself a budget — and you should never exceed it. What is the point in blowing a certain amount of money on decorating if you aren’t going to make it back within, say a year through rental costs? As important as it is to make the property appeal to tenants, you also have to do what’s right for you.
But it’s not just about building and decorating a place that people will want to rent. It’s about building in an area that people want to rent in. You have to be very attentive to the geographical area in which you will be building. If you aren’t, then you could end up building a property in an area where renting just isn’t done. And if you do that, then you lose a boatload of money. So, you should always seek to build your renting empire in an area that is affluent in renting. A good first port of call is to pinpoint any areas that are inundated with students. If you build-to-let in a university or college town then you can be sure that you will always have tenants on tap. Each and every year you will never be short on students wanting to rent from you. So, if you want to play it safe then building-to-let in this sort of area is what you should do. Just be sure to do all you can to safeguard your tenants from criminality as students are at high risk when it comes to it. To protect both your property and induce a relationship with your tenants, make sure to bare this in mind.
You can also take a bit of a chance and be a bit more daring with your choice of location. For instance, by taking into account the work being done on a particular area and using it your advantage you can earn big bucks. If you know that a particular improvement is coming to an area, and you think that may induce a greater need for housing, then why not brave it and build your property there? For example, the HS2 train line that will link England’s capital, London to the country’s second capital, Birmingham, is set to be constructed. And once it has been constructed and is ready for use, which is set to be in under 10 years, it will mean the two cities will be only one hours worth of a train ride apart. Subsequently, this will mean those that work in London won’t even need to be a resident of London. They could be a resident in Birmingham and still be able to reach their place of work in next to no time. Thus, this could then lead to an increased demand in Birmingham for housing as, at least at first, it will be cheaper to stay there than it would be to stay in London. So, if you wanted to plant your build-to-let flag anywhere in the UK over the next few years, do so in Birmingham. More importantly, you should take this instance as an example. It is an example that you should always check to future developments of an area or city and judge how they will impact the property market.
However, as nice as it is to concentrate on where and when you will be building your property, as well as actually building and decorating it, there are still some necessities that can’t slip your mind. For instance, a normal mortgage just won’t cut it, and you can’t forget this. This is for a number of reasons. One is that normal lenders simply won’t trust your building enough to provide you with a low deposit price or even a mortgage altogether. Another reason is that lenders might not have the specific knowledge regarding your type of building. This is why you will have to take out a new build-to-let mortgage. You also need to take the right kind of insurances out too. Standard building and contents insurance just won’t cover you in this venture. This is because of the fact this is a venture that is seen in the eyes of the law as commercial rather than residential. You will need special types of insurance, one of which is landlord insurance. You will need this to ensure you are as covered as can be in this venture.
Building a house from scratch with the view to renting it out is worthwhile for many reasons. Of course, it offers you the chance to earn money as a landlord. But if you offers you so much more too. It offers you the chance to build your own little enterprise literally from the ground up. It offers you the chance to extend not only your landlord portfolio, but your building one too. So, if you are planning a build-to-let venture, and you have the funds to be able to carry you through it, what’s stopping you?