You may have initially bought a property to live in yourself or you may have even lived in a property for many years and called it home, but this doesn’t mean when it’s time to move on that you have to sell. If you’re in a favourable financial position and the property is suitable, then you can turn your home into a rental property.
Knowing if your home is suitable as an investment property
Not all property is suitable as an investment property. Before you start renting your home out to tenants you need to consider what a tenant is looking for in terms of a home and make sure that your rental property ticks a number of boxes. These are as follows:
1. Location – A property that is situated near shops, schools and transport is favoured over those that are not. Tenants look for ease of access and convenience.
2. Easy to maintain – Tenants don’t want to spend hours caring for your property. So while swimming pools and acres of garden sounds luxurious and can add more to the rental and capital value of property, it may also put many renters off. If your rental property has a garden or pool then factor the up-keep into the rent and then pay someone to look after these for you.
3. Number of bedrooms – Real estate agents suggest that 2 bedroom homes and units are the most suitable to rent as they attract the right type of tenant. These homes and units tend to attract young professional couples who are studying or planning to start a family. Renters of this type are usually long-term and will look after a property. Whereas 1 bedroom units are usually too expensive for 1 person or too limiting in space for a couple, and 3-bedrooms or more can invite groups and families to live in your property, which can have a bigger impact on wear and tear, and property maintenance costs.
4. Neutral colour scheme – If you have flamboyant taste and have painted your home in bright, vibrant colours, then consider changing these to neutral tones. Tenants, by law, cannot change anything in a landlord’s property. So before leasing, repaint your property.
5. Update your property – If you have tired appliances, fixtures and fittings then update these before you rent your property. Shiny, new appliances are far more attractive than tired, worn out ones. Plus, an older property becomes far more eye-catching, especially when it’s competing with new property in the market.
Overall, offer your tenant mod-cons, a good floor-plan, fresh paint and easy to clean carpets and flooring, as well as a generous living space. Forget these aspects and you may find that your rental property has a high vacancy rate.
Do you want to know more about turning your home into an investment property? Then contact eChoice. today, we can help you.