Should you buy an investment property with outside space
There are several types of property to take into account when investing in real estate. The three main options are vacant land, commercial or industrial property, and residential property. From a financial perspective, it makes sense to acquire a home. Property value increases and you can make passive rental income. While location is one of the most important elements when it comes down to buying an investment property, it’s not the only aspect to consider. The place you buy has to attract tenants. On that account, if your goal is to attract high-quality tenants, you should purchase a property that fits the bill. In case you didn’t know, outdoor space has always been regarded as an appealing feature.
For tenants, outdoor space is one of the most desired features
Keeping good tenants for longer periods of time translates into less work, less stress, and, most importantly, reliable income. Obviously, when you decide to invest in real estate, you should select a home with plenty of features that will appeal to renters. What people want is a safe neighbourhood, lots of storage, and outdoor space. They need a place where they can step outside, breathe in the fresh air, get their necessary dose of vitamin D, and walk their pets. Some renters are devout gardeners, which means that they love to create and enjoy beautiful gardens. The smart thing to do would be to invest in a property with outside space.
For people all over the world, the experience of having to stay at home for months on end because of the coronavirus outbreak has highlighted the importance of having private outdoor space. It’s a shame that it took us so long to appreciate the great outdoors. People, old and young alike, want a place in the open air where they can relax and unwind or try their hands at agriculture and horticulture. A well-maintained garden, for instance, can make the world of a difference when a prospective tenant comes by to see the home. Not everyone takes pleasure in the work involved in maintaining the garden. Nevertheless, people like nothing more than to entertain guests, soak up some of the heat, and watch their kids or pets play in the wide open.
Before buying an investment property with outside space, let’s look into the pros of it
As a property investor, the best decision by far is to buy a property with outdoor space. If you’re still not convinced, please continue reading to understand the top reasons for purchasing rental property with outside space.
Good rental yield
Due to the fact that residential properties come with higher price tags, it can be difficult to attain strong yields. Among the factors that affect property value are size, location, and finish. Outdoor space is an invaluable addition. Tenants won’t hesitate to pay the highest amount possible, so, as the owner of the rental property, you can maximize the amount of profit. A harmonious garden, for example, can add between 5% and 15% to the value of the property. Homes in metropolitan areas such as Newcastle upon Tyne don’t all have a garden, which explains why the prices of houses that benefit from outside space are significantly higher. Basically, people who pay their rent have to dig deeper into their pockets.
It doesn’t take years to recoup your initial investment
If you want to command a higher rent price, increase the property’s value by making improvements. Add different types of plants and create height with bushes and shrubs. It’s a great investment for your home to let. Maintenance needs to be taken into consideration as tenants don’t have the time to undertake the associated tasks. Actually, they avoid them altogether. You can include the garden maintenance in the rent or encourage tenants to do it professionally. They could engage the services of a contractor. The additional spending is worthwhile in the long term. More precisely, if you ever decide to sell the property, you can recoup your investment and even make more. Keep in mind that spending money is the key to retaining value.
Types of outside space that could increase your rental yield
An investment property with an outdoor connection adds value to your portfolio. There are different outside spaces and knowing a little bit about them can help you decide what’s right. A garden will attract anyone to the property and allow you to charge more rent, which will boost your income. But is it the only option? As a matter of fact, no. We suggest looking at the following options and reviewing them.
A balcony ensures more privacy as opposed to a patio. Tenants can grow plants and vegetables; the best part is that animals and rodents are highly unlikely to invade the space. However, mosquitos can still be a nuisance. Adding a balcony to an existing rental is difficult, to say the least. It’s recommended to seek a residential property that already has one. Don’t rush into marketing the place just yet. Do everything within your power to dress it up. If it’s not appealing to visitors, your efforts will have been in vain.
A simple yard
Even if the property is only capable of accommodating a small yard, that doesn’t mean that it’s not fit for the purpose. Having some sort of outdoor space will help rent out the property and allow you to charge higher rent, especially in an urban area. Don’t be disappointed if you find options without gardens. It’s not the end of the world. To attract high-quality renters, it’s necessary to make improvements. For instance, you can install a table and chairs to create a hangout space. If you want to add ambiance and class, install fairy lights.
A low-maintenance terrace
Finally yet importantly, buy a house that offers a terrace view. Tenants can have a quiet space of their own, where they can enjoy the great outdoors. Don’t be fooled into thinking that people only care about gyms and cinema rooms. Everyone can appreciate an enchanting terrace with easy-to-maintain features. Needless to say, with such an investment, you have to splurge a little bit. Put the money into sprucing up the terrace and dare to raise the rent.