In the last few years, property prices in the UK have risen tremendously. From November 2020 to November 2021, during the Covid-19 pandemic, the average price of a property in the UK rose by a whopping 10 per cent.
In fact, the average price of property reached a record high eight different times in that period alone. While some investors and landlords invested in property for short-term gains and quick profits, others invested for the long run. Regardless, given how the property prices have been on the rise, it is safe to say that most investors made a fortune on their UK property investments!
With that being said, it is important for landlords and property investors to future proof their rentals in order to receive better returns in the future. Why do you ask? Well, there is a lot that can go wrong with your property – a property can get damaged due to termites or black mould, interest rates can soar which might reduce your monthly profit, the government might decide to build a freeway right next to your property or a wildfire in the area could burn down your property.
As per estate agents in Oakwood, every landlord and property investor needs to implement strategies to mitigate their risk to make their property ‘future proof’. In order to safeguard your property, and yourself, from such losses, here are some ways to future proof your rental properties for better returns.
Regular inspections are very important for your property. Schedule regular inspections, every few months or so, and do a thorough check of the property. Check for termite, mould, fungus, water damage and any other such external factors that could lead to permanent damage.
If you are sitting with a property for years on end, without regular inspections, you might not even come to know when something is wrong – and when you do find the culprit, be it water damage or terminates, it might be too late.
Invest In Classic Interiors
In 2018, colour blocking was considered very stylish. In 2020, industrial chic and minimalistic designs with soft pastel colours were considered trendy. In 2022, earth tones and shades of brown and green were popular. So, as time goes by, trends start to change. In order to stay ahead of the game, invest in classic and timeless interiors.
Interior design trends are dynamic in nature, but an evergreen classic interior is never going to go out of style.
Get Landlords Insurance
Landlords insurance is a must for every landlord and property investor. In case of any inevitable loss, landlord insurance will have you covered and protected. There are different types of landlord insurance, some which cover loss of rent, some which cover fire and water damage and some cover theft and property damage. Based on your needs and requirements, invest in landlords insurance – it will certainly pay off in the long run.
Make Your Properties Sustainable
Either invest in sustainable properties or pump money into your property to make it sustainable. For instance, a lot of heat is lost through windows and roofs. Insulate the windows, doors, roofs and ceilings to prevent heat loss, thus reducing the energy bills in the future. Opt for LED light bulbs and energy-efficient lighting fixtures.
If you are buying appliances for your property, invest in energy efficiency appliances. Install a solar water heater, replace water fixtures with water-saving taps and showerheads and also considered rainwater harvesting. Every small step counts.
Add Value To Your Property
Consider adding value to your property by expanding and renovating. You can add an additional bathroom to your property, create a spare bedroom or even add a shed or a garage to your property which can be used as an additional space. Essentially, tenants and potential buyers will pay more if they get more.
As time goes by, keep adding value to your property as that will certainly increase the sale price, as well as the rental price, of your property in the long run.
Know The Area
Before investing in any property, it is important to understand the local area. Are there any upcoming projects or developments in the pipeline that might impact the capital growth of your investment? For instance, if this area is going to have the biggest sewage treatment plant in the next 10 years, the property prices in the area might be impacted negatively.
If the area you want to invest in is going to become a school district in the next 5 years, the average price of your property will definitely rise. Basically, it is important to understand the local market and factor in how these changes might impact your investment.
Opt For Smart Upgrades
Every time you attempt to renovate or upgrade your property, consider smart upgrades. Smart homes have become very popular among young tenants and first-time buyers. Also, smart homes are the future. Invest in a smart thermostat that will automatically set the temperature based on whether you are home or not. Invest in smart fans and air conditioners for additional temperate control.
This will help reduce utility bills in the future. You can also consider adding a smart lock or a number lock with a fingerprint, for an added sense of security.
Choose Locations With A Good ROI
It is important to choose the right location while investing. For instance, Manchester, Leeds and Birmingham are some of the best areas for investing in the UK in 2022. If we look at the data, in the last 5 to 10 years, the average price of a property in these areas has risen tremendously and is expected to continue to rise.
Choose locations that are up and coming – properties near a school district, areas with high rental yields, locations with a high student population, city centre properties and so on. Essentially, do your due research and choose locations where you feel you will get a decent return on investment.
You can always get in touch with local estate agents and market experts to know the best locations for your investment.