If you are planning to rent out your new property then it is important that you invest in one that has the most rental potential.
There are many points to consider when choosing the home you are going to let, but hopefully with our help, and the advice in this guide you will feel confident about which kind of property you are looking for.
Long-term or Short-term lets?
We generally refer to two main types of rental, long-term – at least 6 months, and short-term (or holiday lets) – rentals charged by the week.
The first question you should ask yourself is ‘which type of rental are you going to use the property for?’ because this can affect many factors we would advise you to look at including property type, size, location, summer/winter equipment (e.g. air-conditioning, heating) and furnishing.
Long-term rentals usually generate the least income for the landlord as monthly and annual rental rates are considerably less than weekly rates, however during a long-term rental you will not have the cost of cleaning the property, which you would do for short-term lets.
One of the main advantages of long-term letting is that you are guaranteed income for the time period in which you have rental contract.
Short-term rentals are where you can generate lots of income, but obviously you need the right property, in the right location, and with the right advertising.
Location Location Location
When we talk about location we are not only referring to different towns and regions, although they are of course very important, but we also must remember that different parts of the same town or even village can have a major impact on how many rentals you can achieve.
For example, some areas may not gain much sunlight, some maybe difficult to access or hard to find, and some may be isolated and far away from amenities (although this can be good or bad depending on the desires of the occupant).
If we are looking at the broader perspective, then choosing a particular town or region needs careful consideration, for example, do you want a beach resort? Countryside? City?
Choosing the right type of property
Your budget will of course determine the type and size of property you can buy, for example, and apartment or villa, but you also need to look at which type will attract most rentals. This is where it gets more complicated as you need to think about which type of rentals you want to attract.
If you are going to opt for a large, luxury villa in one of the most sought after locations, then you can charge high prices in but possibly not a fully booked summer season of rentals. This type of home will likely attract those customers who have bigger budgets and are looking for a holiday with a little bit extra class.
On the opposite end of the scale, you could go for an apartment that is a little more basic, charge lower prices and max out your summer rental period. This attracts those people who are on a lower budget or those that are more interested in venturing out of the accommodation and want to use it simply as a place to sleep, therefore do not want to spend a lot of money on rent.
The more bedrooms your property then the more rental potential it will have, this is because a place with several bedrooms can accommodate large groups, as well as small ones who wish to have plenty of space. Of course this depends on your budget, and a place with only one or two bedrooms can be marketed as ideal honeymoon accommodation.
As you can see from this information, there is no set way in which you can be advised on which type of property to purchase, and where to purchase it. It all depends on what you want to get out of it, and what you want to do with it.
This is where we can help you as we will discuss with you in detail what you wish to achieve from your investment and we can provide you with a variety of options tailored to your requirements.