According to some estate agents, Devon is fast becoming a good place to invest in.
Actually, that is not news. The Southwest has often been a good place to park your money in property. The region offers picturesque coastlines, a lovely country feel and loads of open space for your money.
Gill Fielding, founder of Fielding Financial, based in Totnes, claims that Exeter and Plymouth make particularly good investment areas. The towns both have Universities which attract high numbers of students, and hence can command high rental demand.
Also located within the vicinity are good hospitals and sporting facilities, which make them attractive to those actively seeking to rent.
The rise in tuition fees has put strain on students looking to enter University and do a degree and tuition fees of up to nine thousand pounds a year are now common. This has meant that universities which offer degrees for less cost, which would normally not have had a look in, are being considered. Traditionally these have been in the coastal regions, away from big cities, so the lower fees along with cheaper rents have started to make them look attractive to others. Ironically, this demand for rental properties will only push the rates higher for successive students.
How would you invest in property? Find an area that is in demand either by professionals or students. Good transport links, especially rail links or a tram network are essential. This means your property can be easily accessible without the use of a car, and within commute of the big cities. Some landlords even recommend checking out the local rail network timetable to see how often the trains stop, as properties along these areas tend to be more attractive. And if you can find an area that is cheaper to live in, invest in it quick before it is gone!
But it is not just about demand and transportation. Look at the entertainment scene and public facilities. Most rental properties are for younger people who have not yet managed to buy, so if the area you are investing in has an active entertainment scene, such as clubs for bands to perform, or comedy clubs, you may garner more rental income. Pubs, cafes and other social settings are good indicators. Which young person would choose to rent in a place with no social life and feel alone? Not many.
Whatever you do, though, if you do invest, you must make it entirely clear to your tenants that they should not sublet the property out. Increasingly, with the rise of sites such as airbnb, tenants are trying to gain income by even renting out their rented properties without permission. This has resulted in a lot of disputes between landlords and tenants which could have been avoided if tenants had been made aware of their responsibilities. And as a landlord, you would save yourself a whole lot of trouble if you had this point emphasised during the signing of a lease.
In any event of a dispute, remember you can refer to the property ombudsman for mediation. Tpos mediates between tenants and landlords and all other issues relating to property.