The surprising rise of high-end rental properties
Many investors compare the potential yield of higher value homes and opt for cheaper properties for investment because the return is often much better. But, there is an emerging market for rentals of high-end premium properties.
We usually think of small, lower-value properties when we think of property rentals. Many investors compare the potential yield of higher value homes and opt for cheaper properties for investment because the return is often much better.
There is also a perception that there are no potential tenants for high-end properties. Possibly due to an assumption that if the individual has the budget for a high rental amount each month, they would simply purchase a property for themselves rather than rent.
But, there is an emerging market for rentals of high-end premium properties.
Many wealthy households are actually opting for renting instead of purchasing a property, from senior executives who may move to a new area for a specified period to travelling Doctors or Professors. Whilst they might not want to buy a property outright for a short contract, as higher earners, they perhaps wouldn't want to live in a lower-value property.
If you're looking to rent a premium property, the options have been limited until now, as many property owners now realise that there is a market of high calibre tenants interested in renting high-quality properties.
And this is excellent news for those property owners that own a property but don't live in it and perhaps don't want to sell up just now.
Maybe you want to retain the property for the future, as an investment. Or you simply don't want to liquidate the equity just yet. Rather than leaving that property empty, you can rent it out. Then, you will not only be keeping your investment for the future, but you'll also be able to generate a new stream of monthly income.
But there are some things that you should think about first.
Insurance - Ensure that you have landlords' insurance in place, just in case. No one likes to think about bad things happening, but it pays to be protected. You could also look into rent guarantee insurance policies covering rental arrears and legal cover.
Compliance - A bit boring, but you must have a compliant tenancy. This is simple enough for you to do if you employ a letting agent to look out for this. Legal paperwork is correctly prepared and signed, with regulation documentation issued at the proper time so that you are fully compliant.
Getting the property ready - Deal with any maintenance issues that need to be addressed? The property needs to be up to standard for rental, especially if you are targeting the premium market.
It's not all high rents and perfect tenants; of course, there are always downsides to consider too. For some investors, dealing with difficult or unreliable tenants is enough to put them off for good. But, with a lettings expert in your corner, there is nothing for you to worry about.
A letting agent can deal with all aspects of the property management for you, from reconciling the monthly rent to dealing with repairs. They will conduct regular inspections so that you know the property is being properly looked after to mitigate any damages.
By Design agents are accustomed to dealing with wealthy landlords and tenants and managing premium properties. So, you can rest assured that your property will be well cared for.
To make sure that the process is as smooth as possible, get in touch with us today to get the ball rolling and start to find the perfect high calibre tenant for your premium property.
