20 April 2012 ~ 0 Comments

Look Before you Buy! Tips for Landlords on Buying London Rental Properties

Investing in real estate can be very rewarding financially as long as you take the proper precautions. If you are thinking of buying London apartments for rent it pays to do your research carefully. You can either do the work yourself or employ a specialist letting agent to help you.

tips for landlords on buying london rental propertiesIf you do your homework properly, London rental properties are a good investment. The city has a well-balanced economy that is showing steady growth, especially particularly the auto parts sector.

If you are doing your own research on London rental properties, here are hints and tips for things to do or think about.

  • Talk to agents in the locality you are interested in. Ask about the success enjoyed by existing landlords, what tenants are looking for and how much rent they are prepared to pay. If possible, use a real estate agent who is also an area investor.
  •  Check out the area where you’d like to buy. Is it in decline or on the way up? If chains like Wal-Mart, Tim Hortons and Home Depot are moving in, that is a good sign. These companies put a lot of effort into researching demographics and income.
  • Who will your target market be? Families, professionals or students?
  • Think carefully about the best size for your London rental property. Are two-bedroom places in demand or are tenants looking for gardens?
  • Will you let the entire London property to one tenant (or family), or will you let individual rooms to different tenants?
  • Investigate transport, parking, shops, schools and recreation facilities – all of which may be important to your tenants.
  • When you find a potential property make a careful calculation of all the costs – for example loan repayments, taxes, letting agent/management fees, lawyers ‘ fees, insurance fees, repairs, furniture and fittings, utility bills.
  • Obvious but important – do not let personal taste influence your choice of house or apartment. Always look at the London property from a purely commercial perspective.

More Information

To get the national picture on vacancy rates check out settlement.org, a federally funded website aimed at immigrants wanting to settle in Canada.

Image By: Kai Hendry

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