In the 10 years between 2003 and 2013, the number of properties available on the rental market rose by 1.7 million from 2.2 million to 3.9 million. This is predominantly due to the fact that fewer people can afford to get on the property ladder, turning instead to the rental market for their first and subsequent homes. That said, it has also meant that the competition for tenants has become more fierce, so it is increasingly important to make your rental property work for you. Here are a few ideas.
For many people, the ideal rental property is a holiday home. As well as bringing in a little extra income, it is somewhere to get away to every year. You know that your holiday home is equipped with your own standards and that it is in a place that you love. You can use the house whenever you want since you have first dibs on your own place. This is the perfect guarantee that your holiday will be fabulous. The controversial plan by the Liberal Democrats to increase council tax on holiday homes sounds unlikely ever to come into force. According to the Telegraph, Eric Pickles has made it clear that policing such a tax would be virtually impossible. This means that holiday homes will remain a viable rental investment.
Something out of the ordinary
Boats have always been popular for UK holidays, with canal barges, in particular, being associated with relaxing weeks away going from pub to pub. As a result, canal barges have also become popular investment opportunities, commanding around £1,000 per week in rental fees at the height of summer. More recently though, living on a barge has become increasingly popular, particularly in London. According to the Guardian, around 10,000 people are living on London’s waterways. It is a way to avoid the high prices of property both for sale and to rent. This makes residential boats an interesting investment opportunity. While the rental earning potential in the summer isn’t as high as on holiday boats, they can be rented out all year round.
Bricks and mortar remain the most popular and simplest investment opportunity. Not least because you can use a letting agency to assist with every aspect of rental, letting you choose how much of an involvement you have yourself. Local companies such as Click-let will know the market and advise you on the best places to buy, based on what tenants are looking for. It is important to do your research prior to buying a property and be aware of your own limitations. For example, if you are no good at DIY at home, investing in a house that needs a lot of work doing on it would be a bad idea.
Whatever type of property you go for, being well informed is the key. Carefully research the investment and take advice from both financial and rental experts.