More than one fifth of new buy-to-let investors face a wait of at least four months before finding their first tenants, new research has revealed.
But there are better ways of doing it: fully serviced build-to-rent.
Just over 50% of all new landlords sign up a tenant within two months, whilst other face a longer and more costly wait, a recent study by the Nottingham Building Society has revealed.
If you’re making the final step and are committing to a new investment property, not having tenants ready to move in can cost a landlord an average of £2,000.
Property, however, remains an attractive investment for many with the potential to deliver great rental returns and significant capital growth for those playing the long game.
The first few weeks after purchasing a new investment property are always the hardest, for any investors.
But with the UK’s property market slowly shifting more towards a nation of renters, the options for those wanting to invest are also becoming more varied. Generation Rent is growing up, and what they’re looking for is a home that suits their needs rather than someone’s old, randomly furnished house.
Build-to-rent gives them that option. Build-to-rent developers plan their projects to get the most out of it. Most of them come with their own management team, meaning you as the investor can completely lean back and let someone else do the work. Someone who knows what they’re doing and who actually wants to deal with the tenant.
Those developments offer tenants the option to move into a place that is already entirely set up. All bills, including costs for internet and rent, are added up into one monthly payment, nothing else left to worry about.
With this new way of renting, developers and investors are making the market future proof for more tenants to come, as they are looking for one thing: the most convenient way to live.
Investors putting their faith – and money – into the build-to-rent market will be able to offer a better service to tenants and will therefore see a higher interest rate from Generation Rent. And fewer vacant periods.