Ensure your buy-to-let property generates a healthy rental yield for you to enjoy.
You need a healthy rental yield for a successful investment. The rental yield is a calculation of how hard your property is working for you. To achieve this you need to consider a number of factors before you have even found a tenant. Take time to work through this guide to make sure that your property performs as its optimum.
1. Find a letting strategy that suits you.
As a landlord you can rent your property on either a short or long term basis. A short term let can be a matter of days up to six months, and long term is anything thereafter. Short term lets are attractive as they come with a higher price tag. However, they come with extra management costs such as cleaning, changing tenants plus they could encounter more void periods. Simultaneously check out the competition and see if there is a gap in the market that you could fill. You need to do the best to make your property stand out from the other listings in order to let it quickly and start generating an income.
2. Preparation is key.
Marketing a property that is not clean or in good order will not create a good first impression. Take time making sure that the property is ready for photos to get people excited about coming to view the property. Remember it takes just one person to fall in love with the property to take it so first impressions really do count.
3. Check out the competition.
Local real estate agents are your eyes and ears to what is happening in the market. Call on their knowledge to find out what property lets will and generates the best rent. This also gives you a great insight into the experience of an agent that you can use as way to choose which agent you want to help let your property.
4. Choose a mortgage product suited to your situation.
Should you have a loan on the property then consider what the best mortgage is for your situation. For example, fixed rates mortgages give certainly of the monthly outgoings so are preferred for some buy-to-let landlords enabling them to plan accordingly and calculate what offer they can accept on the property.
5. Think about your market.
If you are aiming for professional tenants in the centre of Ho Chi Minh City then vicinity to the mass transit system tend to be a number one priority. On the other hand, families will want to be close to schools and outdoor areas for their children to play in. The type of property will completely dictate the market you are aiming for. Also a building that is well managed and maintained with good communal facilities will retain existing tenants and attract new ones. Some renters rent as they do not want the hassle of property ownership so you need to make sure their letting is effortless and smooth.