If you are contemplating purchasing an investment property, it may be easy to get caught up in what you personally perceive to be an attractive property. However, when looking to rent out your investment purchase, it can be beneficial to place yourselves in the shoes of a future tenant and consider what attributes might make their ideal rental residence.
Proximity to transport
For many tenants, easy accessibility is high on the list of priorities so bear in mind the importance of location and transport when assessing a purchase. Whether it means accessibility to work, a social life or avoiding traffic, having the option to commute easily will likely improve the appeal of your property to a potential tenant, and could increase the rental return that may be achieved.
Consider your target market
It is vital to consider who will be renting your investment property in a prospective area. If you are looking to invest in a family-oriented area close to schools, then demand may be strong for spacious family homes or plenty of backyard space. Alternatively, apartments may be preferable close to city centres or in trendy areas that attract younger tenants. Carefully consider an investment in light of extensive research about demographics and demand for certain types of property in the local market.
The right rental price
When evaluating a purchase, consider what potential rental yields it could attract. Consultation with an agent can be incredibly useful to evaluate this, as you can utilise their on the ground, local knowledge and experience with similar properties. Place yourselves in the shoes of a tenant and consider whether this price may be perceived to be good value for what they are getting and how it compares to similar properties in the area.