Converting properties into flats is something that is becoming increasingly common. It’s a business option that an increasing number of entrepreneurs are seeing as having fantastic income potential. Picture this: you purchase a ‘cheap’ doer upper property, you spend a few thousand doing it up and converting it into flats, and you have a long-term income that comes in every month and can cover the cost of your mortgage, plus offer you an additional income.
There’s a higher demand for flats than ever before, particularly in large towns and cities where there are a lot of professionals and students living. By purchasing a large property that can be split into smaller units, you can diversify your income potential and increase your long-term profits as a landlord. Or, should you choose to do up and convert the property to sell it on, you can increase the value of it by a significant amount.
So bearing all of that in mind, and the potential that converting a single-use property into flats offers, you may be wondering how to go about converting a property into flats and using it as a leappad for your entrepreneurial dreams.
Research the market
As with any business endeavour, one of the first, and most important, things you should do is research the market. Before you even think about purchasing a property to convert, there are various areas that you need to look into. You need to determine whether flats are wanted in the area – is there a call for additional living space? An easy way to determine this is to look at how many unrented properties there are in the area.
This should give you some insight into whether there’s a call for flats in your area, and also, what kinds of properties tend to rent out more easily. Normally, there are specific properties that rent easier than others, and usually, this is due to a certain factor, such as where they are located or how they have been designed. These are important factors to take into account when choosing a property to purchase and convert.
Know your demographic
It’s all well and good researching the market, but if you want to give your chances of success an even greater boost, it’s vital that you are also clued up about your target demographic. If you want to ensure that when it comes to your property conversion that you create living spaces that appeal to renters, it’s vital that you know your demographic and are aware of what your potential ‘customers’ will want in a property.
For instance, for students, the larger the flat and the more rooms available, the better. Students like to live in groups usually. Whereas, for professionals, it’s all about privacy and affordable spaces, which is why studio flats are a popular option. What you’ll notice, if you do your research, is that it’s useful to tailor your property to a certain demographic, such as students, professionals or families, for the best results.
Secure your budget
Once you know what kind of property you need to purchase to increase your chances of success, the next step is to take the time to think about your budget. Do you have the funds available that you need? Have you budgeted enough money to successfully purchase and overhaul a property, converting it into flats? Or, will you need to top your budget up?
If you don’t have the funds that you need, it’s important to think carefully about what you can do to change that. Perhaps you could increase the size of your mortgage if you have one. Or, if you don’t have one in place, maybe you could consider taking one out. Another option could be to think about bringing an investor on board, who can help to make your dream of purchasing a property and converting it into flats a reality. Don’t want a business partner? How about taking out a bank loan instead? There are plenty of options available; it’s just a case of finding the one that’s best for you.
Determine what planning permission you’ll need
When it comes to converting a property into flats, it’s important to consider the fact that planning permission may be required. If you’re unsure whether planning permission will be needed for your project, the best thing that you can do is contact your local council and ask. Different rules apply in different regions, which is why it’s so important to ensure that if you’re unsure, you take the time to find out what rules apply.
Consider the design
One of the most important factors when it comes to transforming a property into flats is to carefully consider the design. If you are serious about making the development a success, you need all the help that you can get, which may include the use of a civil engineering firm. The fact is that when it comes to the structure of the conversion, you need to ensure that it’s sound, and also that it’s designed in the best way possible. If you’re going to make a success out of your property development business, then you need to ensure that when it comes to converting single-use buildings into flats, that you know that steps that you need to take.
If you’re unsure of the design principles that you should take note of, it’s a good idea to spend some time doing research. If you want to guarantee that your building conversion has every chance of success, it’s critical that you are clued up when it comes to the design principles of your development. This means taking note of on-trend design principles and ensuring that when it comes to how you create your properties that you are mindful of what your ‘customers’ will want. If you’re not sure what this could be, take the time to do market research, looking into the styles of buildings and interior design principles that are popular with your target demographic.
There you have it, a guide to everything that you need to know about how you can transform a single-use property into a ‘block’ of flats to increase value and potential profits.