With the Commonwealth Games and HS2 at Curzon Street putting all eyes on Birmingham, there’s never been a better time to invest in property in the UK’s second city. In fact, the latest predictions suggest that property prices for both sales and lettings are set to soar in the coming months, with JLL predicting an increase in rental values of 2.9 per cent in the next 12 months. As a result, many of our clients have been considering adding to their existing property portfolios, or starting an investment portfolio, to take advantage of the upsurge of interest in Birmingham property. That’s why today, Centrick is bringing you our best advice for curating a lettings portfolio in Birmingham that works for you, fits your lifestyle and generates a sustainable return on investment.
Firstly, any budding portfolio landlord ought to seek out their specialty. If you’re new to investment, it would be good to enlist the help of a local estate agency to help you pinpoint the best areas to invest, as some parts of Birmingham are far more in-demand with tenants than others.
It can be hard to strike the right balance when deciding on what areas to invest in: popular areas that can yield high rental values will likely be expensive to purchase, and competition for these units may also be tough. In Birmingham, the B1 and B15 postcodes are particularly desirable, with these postcodes covering the hustle and bustle of Birmingham City Centre and the affluence of green Edgbaston respectively. Investing in properties in these areas are high-cost, but with potentially high-reward.
By the same measure, less populated or unpopular areas may offer cheaper properties, but there may be a slower return on investment due to potential void periods and lower rents. Areas further away from Birmingham City Centre, but with nearby commuter routes into the city would make a great option for those looking to spend less on a buy-to-let property, but still hope to attract those that work or study in the city.
Here’s our quick guide:
Next is to determine what kind of property will you be looking to invest in. This will largely depend on the last point – your area of focus. Edgbaston, for example, will have more detached houses available, whilst it will be easier to invest in flats and apartments in the Jewellery Quarter as this part of the city centre is home to many New Build developments.
Property focus is also inextricably associated with the type of tenants you wish to appeal to. Detached homes, for example, make great family homes, especially for those who are relocating to Birmingham and wish to rent before committing themselves to a fully-fledged purchase. In the same vein, HMO’s will attract students and sharers, and may require a more specialist approach in order to abide by HMO law. Centrick’s advice is to consider creating a mixed portfolio with the help of an asset management company. This would involve investing in various types of property tailored towards different types of tenants so that in the event of one property type becoming less desirable, you have other options to fall back on. An asset management company such as Centrick will be able to advise you which forms of property will diversify your portfolio to your benefit.
Before you start investing in buy-to-let property or expanding your existing portfolio, you must decide who will be responsible for the day-to-day running of your properties. Many portfolio landlords choose to delegate the everyday running of their properties to a management agency such as Centrick, which is an effective solution for those that wish to free up more time to spend with their family or pursue their career. This is often an option chosen by those with large portfolios that require the expertise of an asset manager, however Centrick does offer a variety of property management packages to suit all portfolio sizes.
Alternatively, other landlords prefer to be far more hands-on with their properties – this is a particularly good option for those with smaller portfolios, and an abundance of experience in property management. These landlords can choose to handle anything from maintenance to seasonal rent increases without too much involvement from an external advisor. However, these individuals can still benefit from a lettings manager to liaise with their tenants and find occupants for vacant properties.
No matter what route you choose to take on your property journey, Centrick is here to help you get the best out of your lettings portfolio. Whether you require a comprehensive asset management package, an experienced lettings manager to handle your tenants, or simply wish to talk to one of our resident experts about which up-and-coming Birmingham regions are best to invest in, Centrick can add value. Contact us using the form below or visit our City Centre office on Newhall Street for more information.
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