It often happens that potential property investors tend to think that buying a property is an easy process, and also that renting it out simply means getting tenants straight away in order to start enjoying the Return on Investment (ROI).
Even experienced investors can struggle to buy in Valencia since it is a very particular overseas property market.
There are many aspects to consider when investing in Buy-to-Let, but we are going to highlight what we consider the three main points.
Do not discriminate any area
All of us want to invest in the best possible location. Of course.
But a lack of planning and poor market understanding might mean you invest too much money in an asset that will underperform in terms of Return on Investment.
Also, an expensive property won’t just deliver lower ROI, but it’ll also restrict the exit strategy. If you want out, a sale may take a long time.
In Valencia, there are hotspot micro-markets with high rental demand that will constantly deliver above six per cent and an eight per cent ROI for a property that will cost you three times less than other locations in the same city.
If you have a restricted budget and no intention to live in the property, it’ll be better to open your mind and consider different locations rather than focussing on the main areas.
Professional support goes a long way
If you are renting the apartment out by yourself, you might run into multiple issues that can arise during the rental period, including unresponsive tenants who suddenly leave the premises after giving only a 24-hour notice period.
If this happens, you’ll need to respond quickly, and if you are living abroad it will be almost impossible to check on the apartment. Even if a tenant stays, as the landlord you need to be able to respond quickly to deliver solutions to tenants’ problems and extreme circumstances, such as a water leak or a power failure.
It is paramount to make your property profitable and to avoid a disaster.
Sure, you may have friends in Valencia who can help you and take care of the property. But for how long will they remain your friends after two or three issues.
Property upkeep is a big responsibility, and we strongly advise you to seek professional support to manage your property.
You’re ultimately in charge
If you leave in Valencia and you want to manage your property investments by yourself, a key point is to be able to communicate transparently with tenants who is liable for what, and also, you need to make them understand that this is your property, and you’re in the driver’s seat.
The tenants have to feel comfortable not only with the flat but also when they are communicating with you.
It is reassuring to tenants to be able to communicate any issues that they find with your property, especially within the first few months. Any issue can turn into a problem rapidly.
That is why it is good for them to know when an issue is ultimately your liability, or if it’s the responsibility of the tenant.
Buy-to-Let properties aren’t just difficult to set up, they’re challenging to manage, too.
They’re made even more difficult if you’re a landlord who is outside of the country, unable to respond to problems as they occur.
But all hope is not lost. Property management means you can outsource this stress to a reliable, trusted partner that can take care of your buy-to-let property for you.
With this sorted, you can focus on the thing that matters most to you: seeing an ROI and building your property portfolio.