When new residential developments reach completion, many buy-to-let apartment owners find themselves competing for tenants in the rental market against many neighboring apartments almost identical to their own. However, with care in presenting and pricing their property, they can differentiate it to ensure occupation soon after completion, bringing income on their investment as quickly as possible.
Mason Brooks, Lettings Manager for London estate agent, Hurford Salvi Carr, has compiled a list of tips to help buy-to-let landlord win the race for tenants, particularly young professionals:
General Rules
Put yourself in the shoes of the type of tenant you want to attract. Young professional tenants are usually the market to target and most want apartments furnished in a contemporary and neutral style.
Have a set budget to furnish your apartment. You can offset the furnishing costs against income tax.
For guidance on how to furnish your apartment to attract tenants, look at how developers furnish show apartments. A similar impact can be achieved without massive expenditure.
A well-presented furnished apartment will rent out more quickly than the unfurnished equivalent, and could be worth up to a month’s or more rental income, compared to it remaining vacant. Even with furnishing your apartment as attractively as possible, because of the other competition from many apartments being available at the same time, pricing must be set at a realistic level. It may be worth considering discounting to ensure income is generated on the apartment as quickly as possible. Rates can then be increased at a latter date, when rental contracts come up for renewal and less competition is around.
Furnishing your apartment
The general appearance and specification of kitchens and bathrooms of apartments in a new development is often very similar. Where the owner of a new-build apartment can have an impact is in the furnishing of the bedroom and living areas.
In the case of living rooms, good-quality durable leather sofas and chairs impresses tenants. They also last longer. Combine these with a sleek coffee table and rug to create a space for relaxation.
Curtains and/or blinds, particularly with many contemporary buildings having a large glass area, are important, giving an atmosphere of privacy and warmth. Please note all furniture and soft furnishings must comply with The Furniture and Furnishings (Fire) (Safety) Regulation 1993.
Adding domestic items, essential for modern living, such as microwave, kettle, toaster and ironing board, provide a finishing touch to help persuade tenants to select your apartment.
Expensive home entertainment systems are not necessary to attract tenants, and as they don’t add to rental income, the additional costs won’t be recovered.
For further information contact Mason Brooks, Hurford Salvi Carr, Limehouse Basin office: 020 7791 7011