Guide to investing in the property market and becoming a landlord - part 1 of 2
If you’ve been thinking about investing in the Cardiff property market and becoming a landlord, it’s important you take the right steps to ensure your investment has every chance of being as succesful as possible. To achieve this, a prospective landlord should conduct a great deal of research on the property market in general as well as zoning in on the specific area they are looking to invest in and what it takes to successfully let a property.
To help you with the start of your property investment journey we’ve put together this 2-part guide. In part 1, we discuss the types of property you may want to invest in, the size of the property and whether you should choose to furnish it or not.
Choosing which type of property to invest in
Fortunately, Cardiff is a city that is blessed with a huge range of properties, from traditional or modern family homes, to city flats, waterside apartments, trendy townhouses or ready made HMO properties.
New build property or older property?
When deciding whether to invest in a new build or an already existing older traditional property, you need to consider the type of tenant you’re looking to cater for.
New builds typically have the advantage of their trendy new look and modern layout and of course, everything within the property is either brand new or relatively new depending on when the properties were built, so they appeal to families, young couples or professional renters who are looking for something modern and fresh.
If it’s a completely new build and you’re set to be the first owner, this also eliminates any onward buying or selling chain so the purchase should be far more straightforward.
As for older properties, many of them tend to offer more space than most new builds of a similar price, and that often goes for both the internal and external areas. It’s also often argued that older properties offer a lot more character, which is something that can definitely appeal to the right sort of renters.
Invest in the right size property
As soon as you know what type of tenants you’re wanting to let to, you should have a good idea of what size property you need to invest in. For example, if you’d like your tenants to be a family who are looking to set up home in Cardiff, you’ll need a large enough property to accommodate a family of at least 4 or more with a well maintained garden and perhaps a garage, while a landlord hoping to attract students should be looking for a property that offers several bedrooms. A House in Multiple Occupation (HMO) can require a licence in the UK, so make sure you do your homework on this matter if you choose to go this route.
When it comes to smaller properties, flats and apartments tend to be a popular choice among young couples or individuals who are looking for their own space, as well as professionals who are relocated in the city for work purposes.
To furnish or not to furnish
Aside from purchasing the right sort of rental property in the right area, you also need to consider how you’ll be furnishing it. Some tenants will be seeking fully furnished, others would prefer to kit the property out with their own gear, and some tenants may be looking for something in-between.
If you believe the tenants you’re going to be targeting will be on the lookout for a rental property that’s unfurnished then things will be simple, you’ll just want to ensure the overall decoration is neutral, bright and clean. These tenants tend to be families who have collected their own furniture over time, or those who are looking to furnish it with their own purchases.
However, if you’re likely to target tenants who will be looking for a property that’s either fully or part furnished, such as young tenants who are looking for their first home, students or tenants who are located away for a certain period of time, you’ll have to think about purchasing the right items at the right size and at the right price - set a budget beforehand so you know exactly where you are with expenditure, but try to avoid going too cheap as you could end up spending more in the long run by replacing things that are of less than satisfactory quality.
Furniture and items such as a sofa, table, chairs, kitchen appliances, cutlery, beds, wardrobes, work desks etc. will all have to be purchased if they are likely to be required and will have to be appropriate for the tenants that will be using them.
Are you considering becoming a landlord in Cardiff or would you like to learn more about the property management services that we offer here at CPS Homes? If so, contact our expert lettings team who can help you find the perfect investment opportunity and discuss your options in more detail. Call 02920 668585, e-mail enquiries@cpshomes.co.uk or pop into one of our three branches.
