Living in Luxury?
Landlords need to make a profit from their investment, but they can have other motivations too. For many, being a landlord can be way of indulging their own property dreams, renovating homes in style and buying luxury property to rent out to tenants who appreciate the finer things in life. From sumptuous holiday lets, to modern designer homes packed with gadgets, to grand Victorian property: there is always demand for luxury lets.
Expensive tastes
Buying and letting a luxury home can be lucrative, with homes in some areas of London letting for several thousand per week. At the more ‘ordinary’ end of the luxury market are family homes that might appear average but have been built or revamped to particularly high standards. Creating a luxury home can be rewarding personally as well as financially, giving landlords the opportunity to be creative and have fun with their property – rather than simply slapping on some magnolia paint.
Getting into luxury property
Starting out in luxury property can be difficult – the most obvious hurdle is the cost of buying the property in the first place. But, if you already a landlord and can use existing profits to fund the purchase, or look to buy a cheaper home and make it luxurious. Holiday homes lend themselves particularly well to being first-time luxury lets. They don’t need to be large, so are cheaper to buy, and can be a great way to offer people a unique experience. How about a romantic cottage with roses around the door, deep-pile carpets, an Aga and Jacuzzi in the bedroom, for example? Holidaymakers are often prepared to pay to have things they wouldn’t have at home when away.
Shrewd investment
Another option is to buy a standard family home and turn it into something special. Even an unassuming Victorian terrace can be turned into something stunning. The trick is knowing what to invest in that will pay off. High quality furnishing is important – you can’t expect to stick some laminate from B&Q on the floor and charge luxury rental prices. Things like solid hardwood flooring, hand-made wallpaper and antique, retro or designer furniture can really help make a place feel luxurious. Top-quality kitchens and bathrooms are a must too.
It’s important , though, not to get carried away with creating a dream home and forget the basics. All that expensive kit needs to be protected – get landlord insurance that will cover the value of your investment in case things go wrong.