Not everybody buys property to rent, since many people can’t afford to take out two mortgages or simply don’t have the time to hold down a full-time job as well as manage a second house. However, renting out property can come with many benefits, and once you’ve got everything going, you can sit back and make easy money each month from the house you’re renting out. Here are some top tips to help you along when buying property to rent out to somebody else.
- Think about whether you’d live in the house
If you wouldn’t live in the house yourself, chances are that not many other people will. Is the property on a busy road full of traffic and exhaust fumes? Does it look run down or like the previous owners haven’t taken care of it? Aesthetic features can all be changed, so when you’re buying the property, think more about the location and things that you cannot change easily about the house. People are more concerned about location than we would like to think, and the size of the house also has a big part to play in attracting people when renting a property. If the rooms are small and the ceilings are low, people are more likely to feel cramped and restricted when they walk into the house.
- Consider who you’ll be renting it to
If you’re trying to target families, buy a property that is child-friendly and suitable for families. Again, off the busy roads is always a good feature if there are children involved, and you’ll need at least two or three bedrooms if you want to appeal to the average family. If you’re buying retirement homes for sale in Australia, look at more bungalows or houses which have stairlifts and other special equipment. Of course, you can always add these features yourself, but make sure you consider the additional costs of making changes to the house.
- Buy in a busier area
More people are looking for places to live in areas which are busier and have plenty of work available. Of course this means that the property prices are likely to be higher, but it also means that you can charge more rent, balancing out the mortgage cost or the money that you have paid upfront for the property. If you don’t have the funds to buy a house in a city or busy town, buy a cheaper yet quieter property and change your target market to retired couples or people who won’t be looking for imminent work.
- Add up the costs of redecorating
If you’re renting out a property, it needs to look appealing when potential tenants come and view it. On top of the cost of actually buying the property, you should think about additional costs that you will have to pay, such as getting new carpet or painting some of the rooms. Many people who rent houses also expect most of the furniture to be in place already, so you might need to budget for new kitchen appliances or living room furniture.