While many landlords decide to buy existing properties to turn into rental homes, there are also a select few that also look for plots that they can turn into homes or flats to rent out. Doing so gives you the chance to create high-quality, affordable homes; something that can really come at a premium in London. Here are some of the things you should know if you are building to let.
Treat It Like a Home
When building houses with the intention of letting them out, you still need to treat the build like any other. This means applying for planning permission as soon as possible. Be aware that a local planning department can be incredibly fussy, so you may have to make several changes to your designs before they are approved.
Though it can be tempting to just build an empty shell, it is important to remember that someone will be going into the home. If you have tenants lined up already, why not ask them about some of the basic fittings and fixtures they might need? It could be a nice gesture if you are planning to retain long-term lets. For example, if you know a family will have children moving in, asking them what colour they want their bedroom can be a great move.
Find Local Suppliers
A big project like this is going to take a lot of materials. If you wish to make this your business model – buying plots of land to develop and rent out – you need to make sure you are building up reputable contacts with whom you can build a lasting business relationship.
For example, concrete is going to be a big part of any build. Finding a local supplier of ready-mix concrete means that you will be able to place orders with ease. You will always have access to high-quality materials from a source you trust. To get you started with your search if you live in London, there’s MixIt who are one of the most reliable suppliers in the area. If needed, they can provide you with the concrete in just 24 hours which is one of the main advantages of using someone nearby.
Create Profitable Homes
When building to let, you are obviously not trying to sell the properties on when they are finished. However, it should always be a thought in the back of your mind. Even when taking the wishes of future tenants on board, there are several things you should do to ensure that you are creating high-quality properties that will sell well.
There are many small tips and tricks you can do to bring the value of the property up. One of the best is to create high-end kitchens and bathrooms. Your tenants will get a lot of enjoyment out of them, but you can also use them as a selling point if you decide to move on.
Building to let can create a very different type of landlord to those who buy to let. However, it also gives you the opportunity to let your developer side out and create properties that you are proud to own. With some hard work and careful investments, you could build yourself a portfolio of rental properties that you could not be prouder to own.