Diverse portfolios are common among investors. Investing in different projects to help ensure that a regular income is generated, especially if one is underperforming. A diverse portfolio is also a common trend among landlords.
It appears that more landlords are keen on expanding their property portfolio. Recent reports reveal that a third of landlords are considering expanding their portfolios.
A diversified portfolio with different property investments, such as a combination of houses and flats, can help a landlord generate a regular income if they have tenants occupying most or, ideally, all of their properties.
Most properties in a landlord’s portfolio are predominantly houses. However, flats are also worth investing in. Expanding a portfolio to include flats is something that many landlords should consider, and here is why.
1. Affordable Buying Costs
Compared to houses, the buying costs of flats can be more affordable. Of course, the space is significantly smaller than a house, but flats still have the potential to generate a healthy income.
As they are smaller, many landlords opt to invest in a block of flats. Additionally, if buying a block of flats, ensure that you visit sites like Quotezone.co.uk to gather a selection of block of flats insurance quotes.
Select the one that best suits your requirements for your new investment. With the right insurance, landlords can reap the benefits of investing in flats.
2. Multiple Sources Of Income
A house investment will generate one income unless a house has multiple tenants. Investing in a block of flats means that a landlord could generate multiple sources of revenue.
This is only possible if they have tenants for each flat. Flats in a highly desirable area will have greater chances of attracting tenants, especially in a city with strong transport links.
To help attract tenants, ensure that each flat has the amenities for the ideal tenant. For instance, consider their desirable amenities if you want a young professional who wants their own space.
One of them would be fast broadband, as it is likely that they will be working from home. Modern and clean designs are also a highly desirable aspect of city flats. These amenities could help attract potential tenants and increase the chances of generating multiple incomes.
3. Increases In Value
As house prices continue to soar, many find that they cannot afford the cost of investing in their own home. However, they want a space they call their own – somewhere that can offer them independence. One of the most common choices is to move into a flat.
It provides them with the independence they want, but at a cost they can afford. The greater interest in moving into a flat allows landlords to increase the value with the rising demand. This offers opportunities to increase their revenue each month.
How to start a rental property business successfully.
In addition to an increase in value, if you were to consider selling the flat or block of flats, you will be glad to hear there are plenty of selling opportunities. Support is available to help you put the flat on the market, and once it is on, you will likely see significant interest from other investors looking to invest.
These are just a few reasons why investing in flats is worthwhile and a great way to expand your property portfolio.