If you are thinking of investing in a BTL property there are various aspects you will need to take into consideration.
As most BTL’s are about investment it’s important to establish how much profit you can make on a property. This is called a yield and is based on annual revenue or profit as a percentage of a property's value.
The best way to establish this is to look at various properties for sale and then ask a local agent such as Intercounty how much they think it can be let for per month. At this point a experienced letting’s agent will help you work out how much this will be, taking into account any management fees, maintenance and repairs, and any void periods. Once you have these figures you can then compare them to the properties value and this will give you your average expected yield figure.
Considering investing in a slightly tired property, one that needs a bit of TLC can be a good way of increasing its overall value and rental income. Giving a property a fresh lick of paint and making sure that the flooring, kitchen and bathroom are in good condition can make it much more attractive. According to a tenant survey tenants were more likely to choose properties that were in a good condition, scoring above value. And a happy tenant is more likely to stay longer in a property which will make your BTL more profitable as you will not have so many void periods, advertising costs and contract renewals to do.
The counties of Essex and Herts are worth considering for a BTL investment because there has been a historical shortage of rental property in the area due to popularity.