With building companies in Bristol sourced for you by BBN on hand to renovate any buy to let property you may invest in, you may think it’s a good idea to invest in cheap rental properties. Below is a look at the pros and the cons of investing in cheap rental accommodation, and also why it sometimes pays to use a property management team for such properties.
Building Companies in Bristol : Buying Cheap Homes
If you buy cheap homes in a low income neighbourhood, there is scope to generate a large income on rentals. In some cities across the UK it has been known for whole rows of boarded up houses to be sold or even raffled. So, how could you go wrong?
Firstly, even though the rent you charge in a low income neighbourhood will not be high, you still have obligations as a landlord. You cannot ignore maintenance, and if your property is substandard, you will attract the wrong type of tenant. When investing in cheap homes in Bristol, ensure you use reputable building companies in Bristol sourced by BBN to bring your homes up to standard.
Vetting Tenants
Vetting tenants is something you can do yourself, or something that you can leave to a management team. If you are letting to tenants on low incomes, you can unfortunately expect problems. For example, the new Universal Credit means that landlords are no longer directly paid rent. This has resulted in many thousands of tenants facing eviction due to non-payment. To rent to this sector, the services of a property manager are vital.
Once you have suitable tenants living in your home, they will however be less likely to move. This can be put down to the price that it costs to move house. You will also be unlikely to have vacant properties, as long as they are all up to standard.
There are also many reasons why you would not invest in the buy to let market for the lower income bracket. These include investing in bad neighbourhoods where no one is willing to live, antisocial behaviour that may mean your good tenants end up leaving, and more.
If investing in cheap homes was a guarantee for rental potential, more people would do so, and there would be fewer rows of boarded up homes across our cities. With the right building companies in Bristol on hand to refurbish properties, you can make money from this type of investment. But when viewing a property, remember that it’s electric, plumbing, and fire safety will all need to be up to date.
As an investor, you may prefer to stay clear of cheap rental investments and buy properties in affluent suburbs to rent. Here, the chance of having problem tenants diminishes, but it is not unheard of, and the chances of your property staying empty increase dramatically. The final decision is one only you can make, but with the help of BBN and our property management team, it will be the best one.