Buy-to-let is the cornerstone of many investors’ portfolios these days, as the allure of capital gains combined with rental yields tempts ever-increasing numbers of individuals to become investor landlords.
Gaining an income through buy-to-let is about more than just buying a property, as Ray Withers, Chief Executive of property investment specialists Property Frontiers, tells My Making Money Magazine, “Becoming a successful investor landlord means paying attention to a wide range of factors. There is of course the financial aspect of calculating yield accurately and buying at the right time in terms of the housing market, but other elements are equally important. Buying in the right or wrong area, for example, can be the difference between a successful investment that generates excellent returns and a disaster that sucks in more capital than it generates.”
Even seemingly minor factors such as furniture can make a big difference when it comes to renting out a buy-to-let investment property. New research from lettings agency Countrywide has shown that furnished flats command an 8.1% premium over their unfurnished counterparts.
The Countrywide research shows that overall the best rental returns are to be had from flats in towns and cities, due to their appeal to young, mobile tenants. As many of these tenants have minimal or no furniture of their own, a furniture pack can mean the difference between attracting a tenant and not.
Withers’ own experience backs up the finding. He said to My Making Money Magazine, “Town and city centre locations are much in demand by young professionals when it comes to accommodation. They want to be near work, within walking distance of the shops and close to the local nightlife. They also demand accommodation that is furnished to a high standard, which is why Property Frontiers has taken the time to ensure that many of its leading buy-to-let properties in UK cities offer investors the option to buy furniture packs.”
Furniture packs provide landlords with a quick and easy way to furnish a new property in a modern, appealing style designed to maximise its chances of attracting tenants quickly. At Property Frontiers’ Birmingham buy-to-let development, furniture packs start at £2,250 – a bargain when one considers that the purchase not only impacts on the rent charged, but also on the time taken to rent the property in the first place. After all, the last thing an investor landlord wants is a property that is sitting empty.
With Countrywide also reporting an increase in UK rents of 3.7% year on year for July, the tide of investor landlords doesn’t look likely to turn anytime soon and the more there are, the greater the competition to attract tenants – so that furniture pack really could make all the difference!
