We understand the rental market
Understanding the rental market can be a daunting task, especially for those new to the landlord or property development scene. The urge to buy the best and most stylish furniture can prove detrimental to your margins. And before you jump to any conclusions, its not about buying the cheapest furniture either, it won't last long and it'll end up costing you more in the long run.
Our answer has been in the making since 2005, sourcing suppliers of well made, attractive furniture which can be resold at unbeatable prices. Longevity is key, style is key, but most of all, price is the determining factor.
We've made finding the balance our goal; continue reading for more information.
Changes in the market
Prior to the recession and housing market crash of 2008 the rental market was dominated by lower income households. Since then, the rise in mortgage criteria has made it more difficult for higher earning households to find their place on the property ladder. Whereas before landlords deemed it acceptable to furnish properties with lower cost, poorly built and styleless furniture, the change in the market has meant this is no longer possible, especially when trying to attract higher earning, more reliable tenants. Instead, it has become necessary to purchase furniture with style to create themed homes with character and personality.
However, the problem with higher quality, styled furniture is that it can be very expensive and in turn it affects the yield of the property. Bearing in mind that you ought to replace certain items of furniture every 18 - 36 months, spending too much will mean that your margins are affected for the worse. In order to get the best of both worlds, you need to find furniture with a balance of, style, lifespan and cost. Hopefully we've done that with our product ranges.
Know your audience
Nine times out of ten, when a potential client approaches us for advice, their story usually revolves around them struggling to rent their property at the rental value it deserves. And, lo and behold, the answer is usually down to the choice of decor within the property. Do these people really know their audience? If your property is in a high value, or up and coming area, chances are you're going to be renting to young professionals and/or young families; and these guys won't accept the hand me down furniture from your current house, they also won't accept shoddily built MDF, just as they won't accept embossed woodchip wallpaper! Everything works hand in hand, and knowing your audience is key.
If you're struggling to identify who your audience is and what type of furniture you should be going for, give us a call and ask us. Our trained staff know Yorkshire very well, and can advise on what packages would suit your house the most. We'll also be able to put you in touch with interior decorators should you need them, in order to improve the rental value of your property.
It's a business afterall
Don't forget that you're second rental home or flat makes you a small business owner. This means that you have to start thinking like a business owner. When looking at your properties, ask yourself the following questions:
- How long will this last? How often will it have to be redone/replaced?
- How does that affect the overall return on investment over a typical rental period?
- Will I have to replace this furniture with each new tenant?
- Do I know my target market?
- What do other occupied rental properties in the same area look like inside?