Research from comparison website GoCompare has revealed the top 20 turn-offs for prospective homebuyers, and whilst at yieldit we believe in working with buyers and sellers who see investment property as a business, we also think that it is important to recognise what might dissuade buyers (and more importantly tenants!) from your property.
Selling a property with tenants in situ makes for an attractive proposition, but that and a high-yield alone might not always be enough to secure a buyer. An investment property should have long-term potential to attract tenants and ideally shouldn’t require unexpected repairs which could impact annual returns. With that in mind it’s unsurprising that damp stains on walls and ceilings (69%), a poor state of repair including rotten window frames and peeling paintwork (59%) and unfinished building work (53%) all featured highly for responders in the survey.
Following a similar train of thought responders said they would be put off when viewing a property which wasn’t connected to mains gas (51%), had outdated electricals/wiring (46%), bad DIY (38%) or an old boiler or central heating system (37%) – all of which could significantly damage NET yields when the inevitable time to update comes, particularly in the case of electrics and heating systems which by law have to meet government standards.
Also scoring highly were factors that would impact the enjoyment of living in a property, be that for personal use or for prospective tenants. Over half of all responders cited issues like no parking (56%), broadband blackspots (53%), lack of a garden (52%) and proximity to a major road or motorway (43%) as being a put-off. For investors these are significant factors affecting liveability which could blight the chances of securing a long-term tenant.
Presentation also played a big part for responders. Number two on the list was bad smells (e.g. damp, food, cigarettes, pets, etc.) with 63% saying they would turn their nose up to a property that didn’t come up smelling of daises…
The study also indicated a common trend of homebuyers concerned not only with their own property, but next door too. Those surveyed appeared concerned with the company they keep; with almost half saying that rubbish being strewn in neighbouring gardens would be an issue, along with a dilapidated neighbouring property (43%) and a student let next door (37%).
This might seem like quite the list, but buying any property is a big decision and it’s important to remember that even when selling property from investor to investor there are certain features that will act as a major turn-off. The likelihood is that if you wouldn’t want to live in a property, neither would a tenant.
If you’re looking to sell your property portfolio why not read our recent blog post about the most valuable property improvements or find out what your buy-to-let is worth with our FREE instant valuation tool
