5 Reasons Why Landlords Should Invest In Flats

There has been an increase in demand for rental properties over the last few years and rather than purchasing a property, lots of individuals, couples and families alike are turning to the rental market when trying to find somewhere new to live. For this reason, more people are considering investing in property and lots of landlords are deciding to expand their rental portfolio. 

When considering investing in property, one of the biggest decisions to make is which type of property you’re going to purchase. The property market is very dynamic and there are pros and cons to owning different rental properties, however, it’s common for landlords to invest in flats and this particular type of property is very popular. Flats are often considered to be a great investment for reasons such as;

• Affordable prices 

Generally speaking, good quality flats are more affordable than houses and therefore, landlords don’t have to invest as much of their own money in this type of property. Depending on what your budget is for a buy-to-let investment, you may even be able to purchase more than one flat, enabling you to make more money from your rental portfolio each month. If there are lots of flats for sale in one building, you can sometimes even negotiate a better price. 

• Desirable locations 

More often than not, flats are built in great locations and they are usually found in city and town centres. They will often be within walking distance of lots of different amenities and transport links too, making them a very desirable place to live. Choosing a good location is so important whenever you’re investing in property and the more a location has to offer, the easier it will be for you to find tenants. 

• Easily find tenants 

Flats are a popular choice among tenants for more than just their location. Often, this type of property is favoured by younger generations looking for their first home and older generations wanting to downsize, and they offer several benefits. Even though flats can have a higher turnover of tenants than houses, they usually don’t sit vacant for long and for your investment to be profitable, you need to have tenants paying rent every month. 

• Reduced maintenance

The vast majority of flats are leasehold properties and you will have to pay a service charge to the freeholder, so this is something to consider when making your investment. However, this service charge covers building maintenance and repairs, and the freeholder will keep all communal areas in good condition. As a landlord, this means there is less for you to do and you won’t have to invest as much in the upkeep of your rental property. 

• Good return on investment

Buy-to-let properties are known for being a great long-term investment and not only are they quite a safe investment, but you can generate a significant income from a rental portfolio. Of course, you can also make money on this type of investment when you eventually sell the rental property and commonly, flats will increase in value quicker than other properties. If flats continue to grow in demand, you won’t struggle to sell this type of rental property either, whether you sell to another landlord or a residential buyer. 

Looking at flats for sale in Hertfordshire?

If you’re interested in investing in a rental property and you’re currently looking at flats for sale in Hertfordshire, be sure to contact us at Wright & Co. Whether you’re a first-time landlord or you already have rental properties on the market, we can help you to find the best flat to purchase and we encourage you to take advantage of our local knowledge.

Here at Wright & Co, we have been providing tailored advice and guidance to landlords for many years now and we can answer any questions you may have about current legislation, risks and trends in the market. We can also provide ongoing support once you have purchased your rental property too and we can assist you with the lettings process. Our team is known for being proactive and on the ball, so you can trust that there is no one better to assist you with your rental portfolio. We look forward to discussing flats for sale in Hertfordshire with you. 

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