If you are considering about your next rental property investment, the area you choose will be one of your main considerations. Urban areas offer plenty of choice for professional landlords and plenty of opportunities to achieve good returns, but there are also some less positive points to consider. Here are some of the pros and cons of choosing a property to rent out in areas close to the centre of Britain’s towns and cities.
The sheer demand from people wanting to live in urban areas makes it easy to see the potential for landlords, both in terms of finding tenants and attracting particular groups. A typical city centre will attract older people who need convenient amenities, along with students keen to make the most of the local facilities and professionals who do not want to spend hours commuting. This makes it easier to find your own niche and concentrate your efforts on finding exactly the right tenant for you. Do you want to offer short-term lets to professionals or longer-term lets for those who have deciding urban living is their chosen lifestyle.
Properties on offer are likely to be as varied as the variety of potential tenants available, from executive apartments that are ready to inhabit, to traditional terraced homes and those properties that are just ripe for conversion. With all of the amenities on offer nearby, it will seldom be hard to ‘sell’ this type of property to renters, many of whom will already be committed to the more restricted space on offer from some central homes because they will have great public transport facilities and shops, restaurants and bars on their doorstep.
Choosing an extremely central property within a town or city to rent out will rule out some potential tenants, such as those where outside space is a priority or those who will be irritated and offended by noise. You must also consider the premium prices you will have to pay to buy many central properties or the investment that could be needed if you do manage to snap up an older-style home at a ‘bargain’ price.
The transient nature of many town and city centres must be a considered if you prefer long lets, also crime rates may have an impact, particularly if you plan to leave your investment uninhabited for any length of time. There could be a lack of parking facilities in some urban areas – a factor that may have the potential to turn many tenants away.