So, you’re a private landlord with a property, perhaps managed by a lettings agency, and you’re ready to add to the fold and begin to expand your portfolio. You might even be well-versed in being a multiple-property landlord, but you’re not sure on the next step to diversify your stock
Here we look at two types of property that will bolster your portfolio and have the best chance have being successful.
Investing in a family home
Cities and towns will always need family homes. A city the size of Leicester with a varied, but highly family-focused population certainly does.
Adding attractive family homes to your portfolio, that are located in well-regarded yet affordable areas of Leicester is very worthwhile. A property that's idea for a family is less likely to be on the market for too long because of high demand. And, when tenants are in situ, they’ll be more inclined to stay longer, cutting down on tenant turnover.
Families who have selected a property because of its location to their children’s school are likely to want to stay throughout the duration of their children’s education.
The modern and hip apartments that Millennials choose in their twenties may not be suitable for growing families. Instead, these tenants will be looking to live in safe, family-friendly neighbourhoods.
With supply sometimes limited, once a tenant has found and secured their perfect home, they’ll have little desire to move regularly. As a generation that has spent much of their adult life renting, they’ll be keen to protect both their deposit, and their credit record, so they will take care of the property.
As a landlord, committing to a shrewd investment such as a family home will lead to positive outcomes including increased property value long term.
Investing in a student property
Leicester in particular boasts two famous universities bringing in new students each year, all looking for the best private student accommodation once they have moved out of halls. It can be a lucrative area of the private rental market for a landlord to get into.
But that's not to say student accommodation can't often be a unpredictable sector, with a good year easily followed by a less profitable period and with very little warning.
The best advice we can give is that you make any property you're planning to fill with students the best it can possibly be in every area that matters to them, so you stand out from the competition. Provide students with what they want - quality, modern accommodation to meet their every need - and they should come to you, and hopefully you'll be able to make the best of whatever the market is like at any particular time.
