In recent years, rented apartments have been at the forefront of many property investors’ portfolios. This is due to a number of factors, although it is mostly because many people simply cannot afford to buy or even rent a home, and therefore find apartments much more appealing.
If you’re planning to invest your savings into a buy-to-let property, then an apartment could be the perfect solution. If you’re not entirely convinced that apartments are the right choice for you, read the following benefits to help you understand the advantages of choosing this type of property.
Increased demand
Due to the decrease in homeownership, apartments have become more popular, especially with millennials who generally struggle to obtain the finances for a home deposit. Their next best option is to rent, and with more of the younger generation wishing to be near the city centre due to job opportunities, apartments are their best bet.
All of these factors have resulted in a demand increase, which has called for further apartments to be built in major cities such as Manchester and Liverpool. These destinations are popular with Generation Y, which includes both students and young professionals who are looking to be close to places of work and study. To find some of the best apartments in these locations, you should consult with property investment experts like RW Invest, who have plenty of student and residential apartments available in the north-west.
Long-term investment
It may seem as though an apartment is just a short-term investment, as students and young professionals will come and go. However, due to high demand, there is always someone looking to rent an apartment, resulting in consistent profit turnover.
Apartments are also an extremely flexible property, as they can start as student accommodation but end up being used as a retirement complex. So even in the unlikely event of student property decline, there are always other options that will ensure your investment remains profitable.
Increased rental rates
Due to the increase in apartment buildings, a surge in rental rates has become apparent. This may seem like a negative attribute, as it may be off-putting to tenants. However, it is actually a positive for you as the landlord, especially if your property is located in a prime postcode.
Location is key, so you must make sure you find apartments which offer high rental yields and a variety of benefits for your tenants. This includes finding apartment blocks near central locations or close to transport links, as well as offering them additional perks, which will allow you to charge a higher fee.
Easier to maintain
One of the most off-putting factors of becoming a landlord is the property maintenance duties, which could include anything from renovation to repairs and more. While you will still have to keep up some basic responsibilities, it will be much easier to manage apartments, as they are usually new-builds. Therefore, fewer repairs will need to be made, and you will have much less space to cover during any remodelling.
The less maintenance you need to complete will result in reduced outgoings. However, it is important that you protect yourself and your tenant by mentioning any maintenance tasks within the tenancy agreement. You can also include any maintenance fees which are usually included within the rent, although this must be agreed with your tenant before they move in.