糖心视频

Invest in exceptional design 

White walls, laminate flooring, inoffensive fixtures. 鈥楻ental specification鈥� was once the norm, but times have changed.  

鈥淭he quality of rental stock in prime London is incredibly strong. If you鈥檙e going to get someone to pay a premium, it has to be turnkey, beautifully presented throughout,鈥� says David Mumby, Regional Partner of Prime Central London Lettings. 鈥淵ou鈥檝e got to get it right because the killer of rental investments is void and vacancy periods.鈥� 

In super prime markets (with rents of £5,000-plus per week) in particular, people are often renting a lifestyle, not just a property. They might be in London temporarily for work, or would rather not, for example, pay the equivalent of two or three years鈥� worth of rent in stamp duty on a property purchase. 

鈥淚t鈥檚 important to recognise that these tenants have the financial capability to buy,鈥� says Tom Smith, Head of Super Prime Lettings. 鈥淭heir expectations are the same as if they were purchasing.鈥� 

Deliver the highest service standards 

Four years on from the pandemic the latest ONS figures show people are still spending more time at home, particularly for work, making tenants more discerning about what they seek in a property, says Anna Czaban, Head of Property Management. 鈥淎 new landlord needs to make sure their property is managed efficiently (whether that鈥檚 managing repairs or promptly resolving issues for tenants) and really think about what the tenant wants. Their home needs to work harder for them than it used to.鈥� 

That extends not just to the speed of how queries are addressed, but the way they鈥檙e addressed. It was once common for problems to be fixed while tenants were out working, but these days they鈥檙e more likely to be at home. 鈥淎 tenant鈥檚 experience of, and interaction with, third-party contractors needs to encompass a high level of professionalism that we鈥檇 all expect from a top brand 鈥� from the way contractors are presented to how thoroughly issues are resolved,鈥� Czaban adds. 

Tune into the property markets 

Schools, regeneration projects or changes in government ensure that London鈥檚 property markets are constantly in flux. Understanding which areas are on the up or down in terms of rental demand is vital for investing in a new property, and for understanding where to set the rental level of an existing property.  

London鈥檚 super prime footprint is expanding outside the traditional enclaves of Mayfair and Knightsbridge as fierce competition for top schools in Richmond and Barnes drives demand in the south west of the capital, according to Smith. Meanwhile, the opening of The Whiteley, consisting of 139 private residences and London鈥檚 first Six Senses hotel and spa, also puts Bayswater on the map as a neighbourhood to watch.

Create homes with star quality 

For many, London is the centre of the business, sporting and cultural worlds, meaning landlords with the right property could host the capital鈥檚 next financial titan, the next Premier League star, or the lead actor in a blockbuster movie.  

Short-term lets can prove very lucrative, but these tenants apply the same standards to their home as they do to their craft, says John Humphris, Head of Corporate and Relocation Services. 

Even if your property isn鈥檛 intended for the rich and famous, the principle still applies. In a market where supply is on a level playing field with demand, having a property that stands out for its quality will offer any landlord a competitive advantage. 

鈥淧roperties need to be best-in-class,鈥� he adds. 鈥淓verything must work seamlessly. If it鈥檚 a new-build the appliances should be tested, cleaning must be meticulous, and any technology needs to be up and running, ready for when your tenants walk in.鈥�  

Crunch your numbers 

Higher interest rates have altered the business model. Four years ago, landlords carried leverage at rates of around 2%, but as mortgage rates have climbed, many investors are either lowering their loan-to-value ratio to maximise returns or investing in properties with multiple renters known as a 鈥楬ouses in Multiple Occupation鈥� (HMOs). Either strategy requires detailed business plans before lenders will advance capital.  

Investing in HMOs isn鈥檛 for beginners 鈥� understanding bridging finance and compliance is a must 鈥� but it鈥檚 the fastest route to growth while mortgage rates sit above five per cent. Moves to professionalise the sector through stricter rules and regulations have cross-party support, says Huy Le, former Head of Landlord Finance. 

鈥淵ou have to know your numbers,鈥� he adds. 鈥淭hat means having a tried and tested model in place that proves you know what you鈥檙e doing. Both the government and lenders want to see professional landlords who have high-quality properties and are able to run a solvent business.鈥�