Although long-term lettings to professional tenants are easily the most hands-off way of being a landlord, they’re not your only option.
If you’re curious about the nuts and bolts of alternative buy-to-let models, make yourself comfortable as we take a look at:
Just like any investment strategy, there are plenty of factors to consider before you make the leap, so let’s explore the different options to see if any are right for you.
Many successful landlords pick a single rental sector, fully master it, and stick with it forever. For others, variety makes life more interesting, so here are some general pros and cons to mixing things up.
In a nutshell, the additional income from diversifying your portfolio isn’t entirely passive and doesn’t equate to pure outfit, so consider your time and enjoyment as well the money.
Renting to students means you can let each room in a property as a bedroom and significantly increase the rental income, but there are some basics to getting things right.
As a final tip, remember that students are young, sociable, and often hang out at home with friends to keep things cheap, so look for properties where that won’t cause a disturbance to neighbours.
Living like a local while on holiday has become hugely popular among tourists seeking a more authentic experience than a hotel, and a stylish holiday let in the right location can be a real earner.
That said, there’s a lot of initial setup and ongoing work (or higher management costs if you use an agent), and there are certain criteria you’ll need to meet.
Remember: the most successful holiday lets are in year-round destinations to avoid long periods with no bookings. If everything’s closed in the winter months, your income and occupancy rate will drop.
Also known as a multi-let, a house in multiple occupation (HMO) is a property with three or more tenants who live as separate households.
By renting out rooms separately you can generate extra income, and more single tenants are choosing this option as rents continue to rise, but there are some things to consider.
If you’re thinking of turning your buy-to-let into an HMO, check first with the local authority about licensing restrictions and any required planning permissions as these can vary from street to street.
The short-let market is mostly a mix of people in need of temporary accommodation (perhaps from renovating their own home), or from visitors on business trips or work secondment.
They’re generally looking for all the comforts and convenience of home, rather than simply a base for sightseeing, so expect more cooking and general activity at your property than with a holiday let.
With a suitable location and sufficient investment in furniture and luxury gadgets, short-term lets can fill the middle ground between the stability of long-term lettings and the constant churn of holidaymakers.
Should you diversify your lettings portfolio?
If you’re wondering whether any of your buy-to-lets in the Wilton & Salisbury area would suit the switch to another model, or if you’d like to increase their profitability as long-term rentals, why not get in touch?
Call us on 01722 580059 or message us at email@example.com for a chat with one of our expert team.
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