If you’re a big property market whizz, then you’ll know there are many ways to make money. In years gone by, property flipping was seen as the craze. It blew up, and everyone was investing in houses, then selling them for way more. However, the market changes and different things become popular. Nowadays, there’s a more impressive way of making money on the property market.
Getting involved in the private rented sector (PRS) is now the best way to make money. Recent reports have shown that this sector is now worth over a trillion pounds! It’s the fastest growing property sector in the UK today. For those that don’t know, PRS refers to homes that are exclusively built for rent. They’re not built for the purpose of being sold to homeowners. The main reason it’s become so popular is that more people are choosing to rent homes rather than own them. This is down to the fact a lot of people are open to moving around a lot. Families don’t stay in the same place for decades anymore. People are keen to move if it means they get better job prospects. So, many people are investing in housing developments that produce houses for people to rent.
If you like the sound of this idea, the I have some simple tips to help you get started:
Location, Location, Location
Getting ahead in PRS is all about finding a good location. Ideally, you want to buy land that is in a popular area. Is it worth developing property out in a massive countryside field? No, because hardly anyone will want to rent a property out there. You’re looking for places that are close to busy cities, as these are the most populated areas. It will be easier to find tenants if your properties are in sought after locations.
The thing with rental properties is that your tenants are stuck with the interior design they’re given. So, you need to give the interior a lot of thought for your PRS properties. People want to rent somewhere that looks nice, especially if they can’t make drastic changes to it. My advice is to make everything modern & neutral; it’s the safest option. Naturally, you’ll need to get PRS furniture for your properties too. This will be any essential furniture people need. Things like beds, tables, sofas, etc. There’s no need for additional items like beanbags or computer chairs.
My best piece of advice is to offer multi-bedroom properties. The days of one-bedroom flats are over. There’s no profit to be made with them anymore. Why? Because people rarely like to live on their own as it’s too expensive. More often than not, you can make more money with multi-bedroom flats/houses. This is because you can offer higher rental prices, and people will still pay them. When you live with other people, it means you can split the rent costs. So, this means there’s the potential for more profits from your endeavour.
If you want to make money on the property market, PRS is the way to go. It’s already grown by 55% in the last five years, and experts predict this is just the beginning!