With more than 4.5 million households renting privately in England, demand continues to outstrip supply and rental demand shows no signs of easing. Whether you invest in property intentionally or become a landlord purely through circumstance, we’re here to ensure the experience is stress-free and rewarding.
Getting started as a landlord
Before getting started as a landlord, there are several questions you should ask yourself to make sure you understand what you’re looking to gain from your investment and your financial goals.
What do I want to achieve from letting a property?
Typically, investment in property still outperforms other more traditional asset classes over the long term. Landlords tend to prioritise one of three factors when making decisions about what and where to buy; long-term capital growth, maximum monthly return or strong yield. Most landlords balance at least two of these factors with their rental property or across their portfolios: circumstantial landlords (who might have inherited a property, been relocated for work or moved in with a new partner) tend to focus on the combination of capital growth and monthly returns.
Understanding landlord costs as a first timer is essential when making informed financial decisions. Explore the key expenses landlords need to consider here.
What kind of property should I buy?
Before searching for a property, research typical tenant profiles in the area you have chosen and understand how much rent local residents are likely to pay. Then select properties which will attract their interest. Popular options will often be located close to public transport and local amenities and will always be clean and well-presented with modern kitchens and bathrooms.
Leaseholds and service charges
Buying a freehold property avoids service charges and restrictions imposed by head leases.
In areas like central London where freeholds are not readily available, ensure a minimum lease term of at least 75 years and that letting is permitted.
Service charges will fall to the landlord, but features such as well-maintained common areas and grounds, lifts, leisure facilities and concierge services will appeal to tenants.
What should I look out for before letting?
Ahead of letting for the first time, you will need to arrange the following, where applicable:
- Consent from your mortgage lender, freeholder and insurer
- A clear understanding of any restrictions placed on the type of let or type of tenant – please confirm this in writing to us before marketing begins
- A folder containing appliance manuals and instructions for use (including central heating system) for the tenant’s benefit
- A complete set of property keys (including window, garage and security keys) per tenant, plus a full set for us if we’ll be managing it for you
- Postal redirection, if you are vacating the property being let
- Pre-tenancy documentation and certification
If you're managing multiple properties and looking to maximise your investment potential, our Residential Portfolio Management service can help. Additionally, we at Hamptons offer to take care of the day-to-day tasks like tenant communications, maintenance, and legal compliance, allowing you to focus on growing your investment with peace of mind.
Presenting your property
Making a great first impression is crucial when presenting a rental property. The way your property is styled, maintained, and equipped can significantly influence its appeal and rental value. Here's how to ensure your property stands out to prospective tenants:
First impressions count
Properties which look their best let quicker and achieve higher rents, so it’s worth considering the type of tenant you’d like to attract and decorating or furnishing with them in mind. Whether the property being let is your own home or a rental investment, traditional or contemporary, it pays to ensure you’ll appeal to your target market at a time when tenant expectations are rising. Our interior design team can offer refurbishment, styling and interior design advice, and will also recommend and arrange furnishing packages (to buy or rent) if required.
Kerb appeal
The outside of a property should be tidy and well-maintained, with any gardens kept in seasonally appropriate good order. Practicalities such as refuse disposal and recycling facilities should be easy for tenants to access, while features such as discreet bicycle or pram storage may be relevant depending on your target market.
Technology
Any form of technology that offers peace of mind, eases communication, increases energy efficiency or reduces financial outlay will appeal to tenants. Features such as high-speed broadband and digital or satellite television are now expected as standard, but advancements in products like Wi-Fi-enabled smart meters, and smart systems which deliver lighting, thermostat and security system control from a mobile device, are growing in popularity.
Self-bleeding radiators, automatic stopcocks (which shut down supply in the event of a flood) and Wi-Fi-enabled door locks are also available, offering obvious benefits to both landlord and tenant. Incorporating some of these features will help maximise a property’s long-term appeal to prospective renters.
Decoration
More decorative finishes including wallpapers, rugs, fabrics and furnishings will make a big difference to how well a property lets, and the specification will need to be higher than mid-market tenants might expect. For mid-market, a property’s décor should enhance its features and appeal to as broad an audience of potential tenants as possible.
Furnishing
Whether or not to furnish will depend on the type of property and tenant profile - fully furnished properties tend to attract higher rents, but please take advice from your local Hamptons’ experts before deciding what to provide. Regardless of other furnishings, all white goods, quality flooring and window dressings such as blinds or curtains should always be provided.
General rules of thumb
- Paint walls and woodwork in muted colours, balancing warmth with neutrality and using paints which can be easily replaced for quick touch-ups between tenancies.
- In bathrooms, hard flooring, simple white sanitary ware and a power shower will be expected.
- Carpets, usually preferred in bedrooms, should be neutral in colour and short pile to make them easier to clean.
- Incorporate as much storage as you can. Built-in wardrobes, somewhere to hang coats and a place to store suitcases will all increase a property’s practical appeal.
- For kitchens, simple styles of cabinets and hard flooring work best.
- Lighting is key to creating warmth and atmosphere, so consider how to achieve this while protecting your property’s energy efficiency rating.
- Dress windows appropriately, using a combination of shutters, blinds and curtains to suit the space.