The potential for the price of existing homes to drop is giving pause for thought to those buying property for investment. In the UK, Rightmove has predicted that house prices in 2023 will fall by 2%. However, the estate agent Savills has warned the drop could be as much as 10%
Which magazine in the UK published a report on 2023 potential house prices, and this included data from Halifax in 2022. The building society reported that homes lost an average of 2.3% in value last November – the largest monthly decrease in 14 years.
This has led many property investors to consider renting instead of selling. When you consider that UK Finance expects house sales to decrease by 21% this year, it may make far more sense to rent instead of leaving your property to stagnate on the market.
How should you present your rental home to tenants?
Of course, renting out property isn’t just a matter of advertising it and hoping a tenant will magically appear. Your home still needs to be marketed and presented properly.
Cleanliness
Your property needs to be spotless if you wish to attract the best tenants. You can search for checkout cleaning London for specialist end-of-tenancy cleans. These are suitable for tenants leaving a property, as well as for landlords who want to present their home in the best condition.
Maintenance
One of the most common complaints about rental properties is a lack of maintenance and repairs. If your initial plan was to fix up a property and flip it, don’t forget that you still need to carry out essential maintenance for renting.
Decor and furniture
Consider whether you wish to rent your home as furnished or unfurnished as there are certain criteria to meet with both types of rental properties. You will need to consider wear and tear, and how much investment you wish to make too.
How should you furnish and decorate your rental home?
There are many things to consider before investing in property, including having an exit strategy. A popular move now is to buy and hold property until the housing market picks up again. So, assuming you have decided to rent your house or apartment for the foreseeable future, you need to consider how to decorate and furnish it.
Below are a few areas you will need to consider for your budget and practicality. What type of decor appeals to tenants, and how much will maintenance cost? These areas and others are taken into account here.
What flooring should you use in a rental home?
Carpet is not always popular with homeowners and tenants, but there are benefits to installing some in your home.
For a rental home, synthetic materials are a good choice. Nylon and polypropylene are less expensive than other choices, and importantly, they are stain resistant. Services such as Crown Cleaners will provide carpet cleaning, but having a material that is stain resistant is a good idea for a rental property.
Many individuals favour natural flooring such as wood, but this can cause problems. Wood flooring will need looking after, and can become stained and scratched. In an apartment, this type of flooring can cause noise and disturbance to the home below. However, vinyl wood flooring gives a kitchen a natural look and is budget-friendly.
What decor should you consider?
For a fast rental, you should always use neutral colours throughout the home. Whites, off-whites, beige, cream, and shades of grey, work well in any home. If you are renting your property as fully furnished then you can add some accents and colour this way.
However, your tenants will have belongings and decorations of their own which will add the necessary personal touches. Neutral colours will appeal to the majority of potential tenants as you will present them with a blank canvas.
What do you need to install in a rental home?
Whether you offer your property as furnished or unfurnished, you will still need to meet certain legal obligations.
Unfurnished homes
Unfurnished property needs to have flooring which can be carpets, vinyl, or a suitable alternative. Ideally, as a landlord, you will want something hard-wearing. You will also need to provide window treatments such as curtains or blinds. Aluminium Venetian blinds are rust-resistant and suitable for many areas of the home. Bathroom and kitchen fixtures are also necessary.
Even unfurnished homes need certain white goods such as a cooker, washing machine, and fridge/freezer.
Fully furnished homes
These require the same as above but with the addition of at least one bed, table and chairs, a sofa, and basically everything you need to be able to move in and live. Providing a fully furnished home will cost more, but the security deposit is there to protect you against breakages.
One of the most convincing reasons to rent instead of sell is to provide a regular return on your investment. But, will you see a good ROI?
How much will you make on a rental property?
The average UK rental yield is about 3.63%. If your property is giving you a higher yield then you are making a good ROI. And of course, you have the option to sell when the market improves.
Surprisingly, London has one of the worst yields – percentage-wise – in the country, so if you intend to buy-to-rent, you may wish to look for another area to invest in. You will also have to take maintenance into account.
When you decorate and furnish your rental home, you should look for materials that are hard-wearing, long-lasting, and scratch and stain resistant. Each year, landlords spend around 1% of their property’s value on repairing and replacing items in rental homes. This equates to £30 billion in maintenance on rented properties.
Summary
If the predictions surrounding house prices and sales dropping in 2023 are true, then it may be wiser to rent than sell at the moment. However, renting property comes with certain responsibilities.
You will need to install certain white goods and furniture. You will need to decide whether to go fully or partially managed. And you will have to clean to a professional standard. Lastly, you should stick to neutral colours and let your tenants add contrast themselves.
