Buy-to-let: how to make your property most appealing

Buy-to-let: how to make your property most appealing to the rental market.

Getting a foot onto the property ladder is becoming more difficult so a growing number of people are looking to rent – and with new regulations announced this month affecting capital gains tax for landlords, the buy-to-let market looks even more appealing to investors. Here, Mark Cooper, Managing Director of homeimprovementquotes.co.uk, looks at how to make your property most desirable to the rental market.

What’s new in the rental market?
The announcement from the government this month, that capital gains tax is set to decrease for landlords, has made the rental market look more promising for property investors. Buy-to-let investors will pay just 18 per cent in capital gains tax – down from 24 per cent last year. Rented homes are also in high demand as families are struggling to get onto the property ladder. The shortfall of good quality family homes for rent is noticeable, especially since the introduction of HIPs earlier this year. So how do you make your property more appealing to prospective tenants?

Identify your tenants:
Your main aim when decorating your buy-to-let property is to appeal to as many different tenants as possible, but it helps to have an idea in your mind as to the type of tenant you want to attract. The type of house you are letting will limit the options – obviously you’re not going to let a studio flat to a family of four – but consider the options when decorating. A young professional will be looking for a clean, modern space without too much fuss or clutter, whereas students may be willing to settle for a less modern house – however they will usually need it to come fully furnished. If you are letting your property to a family, it is worthwhile remembering that they probably have plenty of their own belongings so will only need the basics – cooker, washing machine, fridge/freezer etc.

Keep it simple:
Magnolia and white may seem like a bland colour scheme, but it is by far the safest option. You don’t want to put tenants off with outlandish colours! The more neutral a property is, the more tenants can personalise it with their own items – rugs, cushions, paintings – and then when the next tenant arrives, they can do the same. Remember you are not decorating this property for yourself, so you don’t have to like it! If you think it’s boring, it’s probably the perfect rental décor.

Not only will white and magnolia appeal to the most tenants, it is also the cheapest option – a litre of white paint can cost as little as five pounds! If every room in the house is painted the same colour, it is also easy to touch it up if it starts to look tired or to add a new coat between tenants. Matt emulsion is the cheapest option, but is probably best for use on ceilings as it marks easily. Soft sheen paint is slightly more expensive, but is more durable and easier to keep clean – best for use on walls.

Always go for white:
When it comes to fitting a bathroom in a rental property, always go for white – not only does it look clean, modern and fresh, it is also the cheapest option. A brand new white bathroom suite comprising bath, basin, toilet and taps can cost less than £500 and is one of the main things on a tenant’s checklist. An old-fashioned or coloured suite could make the difference between a potential tenant choosing your property or someone else’s. Most people will also consider a shower to be a standard requirement, but don’t worry, these can cost less than £50 and are easy to install. Remember to stick to the basics in the bathroom – most tenants only want it to be functional and are not worried about luxuries such as heated towel rails or Jacuzzi baths, however much you’re tempted!

When it comes to tiling the bathroom, don’t ruin all of your hard work going minimalist by choosing dark, overbearing tiles. White tiles can cost less than seven pence each, and it’s really not worth spending any more. Plain white tiles look clean and fresh and will complement almost any suite – it also means that tenants can put in any of their own bathroom accessories like towels and bathmats, without having to worry if they match!

Pay attention to the floor:
It’s no good having a fresh looking house if the carpets date back to the seventies! Recovering the floor doesn’t have to cost the earth and will make such a difference to actually letting the property. Plain cream carpets start at less than four pounds per square metre, but may not be practical for every room in the house, particularly if the front door opens directly into the lounge. Muddy boot-stains are the last thing you want on a brand new carpet! Laminate flooring is easier to keep clean and starts at less than six pounds per square metre. It can also be fitted anywhere throughout the house, except in the bathroom – this would probably be best carpeted, as tiling or lino can be cold! Tenants are unlikely to pay a higher rent for extras such as underfloor heating or luxury carpets – again it’s better to stick to the basics.

Furnishings:
Most tenants will expect rental properties to be let unfurnished – however students and some young professionals will need furniture. With students especially, it’s not worth spending a fortune – things will be spilled on it, it won’t be taken care of properly and you’ll lose out on costs. Remember students and other tenants won’t treat it like their own furniture because it’s not theirs – it’s yours. It is a good idea to take a deposit for all the furniture at the beginning of the lease and make sure you keep a record of what state it was in at the time – that way, at the end of the lease, you will know how each item has fared!

If you buy all of your furniture from one place, you may receive a discount or qualify for free delivery. Some furniture shops offer what is called a “rental package” which contains everything you need to furnish a home – beds, wardrobes, cupboards, sofas, chairs, dining tables etc. When choosing a package, again be mindful that you only need to provide the basics – tenants can add to your furniture with their own. You don’t need to provide fancy side-tables or CD-racks – these are optional extras which tenants can buy themselves. If you are letting to students, remember that they will need slightly different furnishings – desks and bookshelves are extras which may not apply to regular tenants.

If you are planning to let your property unfurnished, you will still be expected to provide the basic appliances. It’s worth shopping around for these as some stores offer discounts if you buy more than one appliance at the same time and again, some offer “rental packages”. It is at your discretion which appliances you consider to be a basic need, but a cooker, washing machine and fridge/freezer are a must! Some tenants will ask for a tumble dryer, but most won’t be put off by the fact that there isn’t a dishwasher!

Finally, always consider the rent you’re going to achieve when planning your décor and buy accordingly. Keeping things simple will reduce your initial outgoings and keep future maintenance costs low, ensuring you maximise your profits!