Thinking About Becoming a Landlord?

Investment

Investing in a property for rental can be a reliable medium to long-term investment providing both rental income and the potential for capital growth. Whilst you may see a short term increase in capital in any property, this depends on market conditions, and the value of your property can decrease as well as increase..


Location & Target Market

You should always research the potential of a property and its target market. Young professionals will be looking for low maintenance, good transport links, convenient shops, pubs and entertainment. While students will be looking for a good quality rental properties within easy reach of the universities that they can share with their friends.
Once you have determined your target market by the location and style of the property, it is important that you present the property appropriately.

INCOME GENERATION & YIELD

The gross yield of a property is calculated as the rental income expressed as a percentage of the properties capital value. You might find that if the value of your property shows a sharp increase in value, the gross yield may not be maintained, as rental income may not increase proportionately.

The table below displayed shows how you should calculate the yield potential of your property. Please note: This example is only an example and should not be taken as an accurate prediction.