There are many key factors to consider when purchasing a buy-to-let and one important, often hotly debated concern, is whether to invest in a property with outside space or not. Although the decision is personal to every landlord, today we help you weigh up the pros and cons of buying a rental property with outside space.
PROS
Higher rental value
While the rental value of your investment property depends on many factors – size, location, finish etc – outside space will often add pounds to the monthly value.
Of course, the added value of outside space will be different in every area of London. But according to experienced Lettings Manager Stephanie Kele, a garden can add between £50 to £100 a month to the rental price of a property in the increasingly popular south London borough of Streatham.
Retain sales value in the long term
Generally, properties with outside space are in higher demand than those without, meaning your additional spending will always be worth it in the long term.
When it comes to selling the property in the future, it’s likely that you will recoup your additional investment and potentially make more than the added cost of the outside space.
This is particularly true if you keep the garden well maintained throughout the lifetime of your investment and make sure it is up to standard when it comes to selling. Spending money to ensure the outside space is usable is key to retaining value.
Greater rental demand for your property
There are less properties in the capital with outside space than those without, meaning homes with outdoor entertaining space may be snapped up quicker.
This is especially true of flats in period conversions, where only homes on the ground floor usually have garden access. Properties in London’s newer apartment blocks with balconies and terraces are also in high demand and can have greater appeal for renters who are looking for lower maintenance outside space.
CONS
Maintenance problems during tenancies
Buying a rental property with outside space requires greater maintenance. While balconies and terraces are fairly easy to maintain, gardens with grass and plant life can be more difficult to keep tidy.
Landlords will give responsibility of the outside space either to the tenants or themselves and will outline this in the contract. If you opt to give tenants responsibility, this can sometimes cause issues if they are unwilling to carry out the work or pay for a gardener.
In some cases, you may end up paying for a gardener to ensure the garden is kept presentable – especially when marketing the property to new prospective tenants.
Larger initial financial outlay
It’s likely that you will pay more for a property with outside space than for one without, which is worth bearing in mind when calculating the cost of the additional investment and how much the outside space will add to the rental value.
If you can afford a property with outside space, it certainly has great investment potential. However, rental properties in London will always be in high demand, with or without a garden.
Insight for your investment
If you're already looking at a property, why not try our rental yeild calculator? You could also discuss the finances of a buy to let mortgage with our trusted partner mortgage brokers, Alexander Hall or discuss your investing options with our new homes lettings team.
