Investing in rental properties has fast become big business. It offers a couple of avenues that can result in increased profits over time. Because it provides such a unique opportunity, many are now seeking to purchase property in order to rent to tenants for an alternative revenue.

Once you have found the right property, taking into consideration the area and other factors that could affect housing prices, you should consider your expectations for your investment. Renting will not generate instant profits: investment is a long game. The good news is that, if you are patient, you have two ways of getting more than you paid for outright.

Rental yield

First and foremost, you’ll start to generate returns on your investment from your tenants in the form of rent. A good referencing service can make sure that your prospective renters have good credit and the capacity to pay their rent on time. Other personal references will also make sure that you can select tenants who will take good care of your property when they are living in it, making sure your property retains its value.

Capital growth

The main profit will come from the eventual sale of your property. A good time to sell is once you’ve generated enough profit from rent to cover your outlaid costs, allowing you to reap the full sale profit. For most properties in the right areas, you’ll get back more from the sale than you paid for the home initially, provided the property is still in good order.

If you need help finding the perfect property, look to Moovahome. Based in Greenbridge, we’ll find you the right property and advise you on ways to make the most of your rental opportunity.