Invest in properties in sought-after locations
When it comes to choosing a property to invest in, it’s important to be choosy about the location. There are hundreds of retirement communities to choose from. It’s just a case of finding the one that offers the best local amenities, as well as the best on-site facilities.
To do this, Google ‘55 Plus Communities’ and see what comes up in your local area. Read the reviews of each one and see which seem to be the most sought after ones. The last thing you want is to invest in a property in a retirement community and not be able to fill it. So it’s important to take the time to do your research, to ensure that you’re investing in a property that’s in a sought-after area.
You’ll need to offer long-term lets
If you’re going to rent the property out, then you’ll need to offer long-term lets. Most seniors more to senior living communities to live out their golden years, and won’t want to move again. So, if you’re going to rent to seniors, it’s important to offer long-term lets. Working out the ins and outs of these can be tricky. If you plan on putting the price of the rent up over time, that needs to be included in the tenancy agreement.
You will need to provide maintenance
Most seniors won’t want to have to worry about maintenance. This means if you’re going to rent to seniors, you need to provide maintenance for them. Some senior living communities provide complementary maintenance services, while others don’t. So this could be something worth looking into. If you are required to provide the maintenance, then it may be worth putting the rent at a slightly higher price.
The interior will need to be made senior-friendly
If the interior of the property isn’t already senior-friendly, you will need to take the time to adapt it. Of course, the chances are that because the property is part of a senior living community, it will be senior-friendly inside. However, if it’s not, then you’ll need to have it done up. Of course, that’s the same with all investment properties - most of them need doing up. So, it’s not as if you will have to put more money into the property; it’s just that the changes that will need making are different.
So there you have it, everything that you need to know about investing in a property to rent out to senior tenants. If a property in a retirement community has caught your eye, don’t be afraid to invest. Renting to seniors has just as much income potential as renting out regular properties.
Site last updated: 2. April 2020