Many people in the UK are opting for a staycation this summer over international travel. As lockdown restrictions begin to lift, the business industry and the rental market will start to open again. If you are looking for a new business venture, the rental market might be the one for you.
Between April 2020 and 2019, global air travel dropped by a staggering 94%. Flights were grounded, international holiday businesses went bankrupt, and the credibility of many flight companies dwindled. UK holidaymakers were hesitant to travel abroad in 2020, especially as many countries required them to self-isolate in their chosen destination. In fact, most holidaymakers said they would not be traveling until they had their vaccine for coronavirus.
Now, in 2021, the vaccine is being rolled out, and coronavirus restrictions are finally starting to lift. However, many holidaymakers are still opting for a staycation this summer over an international trip. A staycation involves less travel and isn’t as expensive as an international holiday. It’s also worth noting that a staycation does not rely on other countries and their management of coronavirus as well.
With more Brits staying in the UK for their summer holiday, it is the perfect time to invest in the rental market. Here are a few things to bear in mind if you want to invest in the property rental business this summer.
Do your research
A property is a considerable investment, and it’s essential to do your research before you sign a contract or put down a payment. Conduct an investment property analysis to see if this is the best investment for you right now.
You should also use real-estate matrices, like capitalization rates and cash-on-cash returns, to help you analyze the profit margins. Choose a well-regarded letting agent to help you navigate the market and get the most out of your investment.
Invest in property maintenance
The condition of your property is critical. Ensure you carry out essential maintenance checks and professional deep-cleaning and give everything a fresh lick of paint. First impressions count, and a tidy, well-kept house is far more appealing to renters.
Set a realistic rent
No one wants to live in an overpriced rental home. Look at your property’s location, condition, and size to determine how much you should rent it for. Make sure to do your research by looking at similar rental homes in the area to determine a competitive rate.
Make payments easy for your tenants
It’s essential to make the process as streamlined as possible for your tenants in the rental business. In order to make the process streamlined, you need to choose the right tenants. Do a background check on their rental history, household income, employment history, criminal convictions, and credit score.
Invest in the rental business this summer and enjoy a new business adventure in the post-pandemic era. Just remember to do your research and ensure you have ample cash flow to invest in a new business.