Who will you let it to? This is the very first thing to consider. You can’t find the perfect apartment to invest in until you know who your target letting market is. For example, do you intend to rent into the professional market, students …. or someone else?

When you’re looking for property to buy make sure the properties you shortlist will appeal to that type of tenant.

Is the location right for your market? Students look, first and foremost, for locations that are within walking distance of college and, secondly, locations that have good public transport links there. Professionals look for locations that are easily commutable for work and also those that have good road/rail connections.

What amenities are there nearby? Apartments which have amenities such as convenience stores, bars and restaurants nearby are usually easier to let. Localities that have no local amenities can be more difficult to let.

How many bedrooms? One bedroom apartments can only be let to singles or couples. Two bed apartments can be let to singles, couples and sharers. A property which can be let to sharers and which has two double bedrooms (not just one) can command a higher rent.

In many cases, studios and three bed+ apartments have a much more limited demand than one and two beds.

Should you buy off plan? Buying an apartment that hasn’t been built yet is often a way to invest at a very attractive price. However, the downside is that there’s no proven letting demand for a property that doesn’t exist yet – and the projected rent may not reflect the actual rent which can be charged when the apartment is ready to let. (If you are offered a guaranteed rental period bear in mind that the guaranteed rent may well not be the same as the actual rent which can be earned.)

Is there actually a demand for that location/that type of apartment? Within any given city certain locations (and even certain buildings) plus particular types of apartment will be in high demand – while others will be in low demand, or even in no demand.

Look at if/how many vacant apartments the block already has, if any. Ask local letting agents and experts for guidance on this.

Important – new developments tend to be in high demand initially as they are heavily promoted by their developers. This tends to tail off in future years.

How will you let it? Are you planning to rent to a long term tenant, a short term tenant, a corporate tenant or, perhaps, put your apartment into the growing daily rental market using a site like Booking or AirBNB?

In general terms shorter term lettings return a higher yield, but more management time and expense is involved.

Consider whether you will be letting the apartment yourself or will need to find a management company and/or letting agent.

Should your apartment be furnished, unfurnished or partly furnished? To a greater extent this is linked to the type of tenant and letting you have in mind and the rent you can charge.

Remember that if you opt for partly or fully furnished the standard of furnishing should generally be in keeping with the standard of the apartment itself, ie. higher end apartments should have higher end furnishings.

Is the block well maintained? Does it look appealing? Apartments in blocks which have poorly maintained or worse still dirty grounds and communal areas can be difficult to let and, where they do let, probably won’t attract the best prospective tenants.

What service charges are payable? As well as Council Tax and ground rent there will almost always be a service charge to pay for maintenance of the communal areas and grounds.

Be aware that blocks with higher service charges are very often maintained to a higher standard but this isn’t always the case. An apartment in a well presented, high service charge block may even be harder to rent and even reduce the rent you can charge not add to it. High service charges can reduce your yields – since you’ll have to cover them yourself during void periods – and even make your investment harder to resell.

Lastly, as with any kind of property make sure you have an exit strategy before buying an apartment. You might find this article useful: Buy To Let Investment: What’s Your Exit Strategy.

Also, here are some general pitfalls to avoid when buying property to let: 12 buy to let property fails to avoid.

The post Insider Tips, Strategies When Buying Buy To Let Apartments first appeared on Property Insider.

First on their tip list (but in no particular order) is Hayes:

Hayes average 2 bedroom house price*: £340,000

Hayes average 2 bedroom rental price*: £1,250 pcm

Highest potential rental yield using the Portico Rental Yield Map*: 5.1%

Killer reason to invest here:

“When Crossrail launches in Hayes next year the area will suddenly be much more accessible and desirable to both investors and first-time buyers. Currently this west London town is only served by Great Western railway at Hayes & Harlington station, but from 2018 the Elizabeth Line will take residents into the West End in just 20 minutes and into the City in under half hour.

“Regeneration is smartening up the town centre, which will help deliver economic growth, jobs and a thriving economy. New pavements are being created on both sides of the road, additional street lighting improvements are underway, and a ‘Made in Hayes’ new landmark has just been unveiled. The council hopes this will give Hayes the wow factor; I think it will make it an attractive hub for young professionals and young families who can get more value for their money here than in other parts of west and east London.” Vatche Cherchian, Regional Director, Portico.

Guest post provided by Portico.

Disclaimers: Rental yields quoted here are statistical assessments taken from the Interactive Yield Map www.portico.com/yields on 28/06/17. They are not guaranteed and may be lower if the property does not achieve continuous occupancy. House prices and rental prices according to Rightmove and Portico market data, accurate as of 28/06/17.

Those considering investing in the London property market should remember that house prices do not only go up, they also can fall. There is no guarantee that Portico’s property experts will be right in their hotspot predictions.

The post Revealed: Hayes One Of 10 London Areas Tipped For House Price Growth first appeared on Property Insider.

Despite the Government having announced a series of policy changes aimed at landlords, investing in bricks and mortar is still a worthy asset class thanks to its long term returns, according to IMS Property Solutions.

More than four million households rent privately in the UK and this figure is set to grow as people continue to struggle to get on the housing ladder. However, there is also the growing trend of people choosing to rent rather than buy because of the flexibility it offers them.

Competition for rented homes has intensified over the past 12 months and led to accelerating growth in rents. In the Bicester and Oxford area where IMS Property Solutions is based, yields of between 4-6% are widely possible for investors.

Towns and cities always prove particularly popular with renters due to their range of amenities and facilities. Locations with good road and rail links are also high on the list of desirables for tenants, making these types of places reliable for buy-to-let investment.

Commenting on the current market conditions, Michelle Niziol, Managing Director of IMS Property Group, said:  “Growth in rent in the south of England is being fuelled partly by an increase in the number of people leaving London, looking for more affordable areas within the commuter belt.  This is particularly so for people aged over 30 and families, who need more space but cannot afford the higher rents of the capital.”

Niziol says that landlords should consider a number of elements when buying a property to let including the following:

• All landlords should establish a letting strategy beginning with the type of tenant you want to attract and then think about how you want to present the property, the cost of running the property and how it will be managed.

• Landlords also need to consider their mortgage needs and taking out specialist landlord insurance.

• When looking to let a property it is vital that it is presented in the most attractive way possible and landlords should carefully maintain its condition for each of the viewings.

• Landlords should be prepared to incur costs throughout the tenancy. Even when the property isn’t occupied, landlords will still need to pay the mortgage and council tax.

• Landlords need to look into the legal elements of letting a property, including the need to have an energy assessment of the property and gas safety checks, to name a few of the requirements.

IMS Lettings Solutions was established by Michelle Niziol in 2015. The business has since grown and now manages a wide range of properties from short-term private and professional lets to large scale investment and refurbishment projects.  As a member of The Association of Residential Lettings Agents (ARLA) and the National Association of Estate Agents (NAEA), customers of IMS Property Solutions can rest assured they are dealing with a trusted agent which is externally regulated and adheres to the strict codes of practice that the regulatory body requests of its members.

For further information visit www.imsinternet.co.uk

The post Why Buying To Let Is Still Worth The Investment first appeared on Property Insider.