Which city to invest in?
Or will the property I want to buy rent best?
It’s a question that inevitably ar ises when you want to invest in rental property. To find out whether my property will rent, which city to target first, etc. There’s a golden ruleIt’s not a question of targeting a particular city, like student cities, where the risk is often to rent your property for 10 months out of 12, or to have the student who says he wants to rent your apartment for four years, but a student can change schools, go on an internship or other reasons that don’t guarantee you’ll be able to rent for the long term. One thing is certain: in France, everyone needs a place to live, whatever the city! Small towns with fewer than 1,000 or 2,000 inhabitants can be avoided.large cities or cities with between 10,000 and 50,000 inhabitants with a certain rental pressure to ensure rapid tenant changeoverIn other words, if you have a tenant who is leaving, you’re going to have to pay the rent. find one quickly enough.
Three techniques to check that a property is easily rentable
It’s all about going to a site called rental tensiometerOnce you’re on the site, you’ll come across a small diagram where you simply enter the zip code of the town you’re interested in investing in, and then This will tell you how difficult it is for a tenant to find a place to live.So if it’s difficult for a tenant to find a place to live, it means that there’s a lot of pressure on the rental market, which is bound to be a problem. positive for your rental investment.
If rental tension is very lowIn other words, if a tenant has no difficulty finding a home, it means that there are more offers than requestswhich in this case is negativeThis doesn’t mean you won’t find tenants who will stay for a long time, in which case it’s perfect for your investment. On the other hand, if you have a tenant who leaves and it takes you 3 or 4 months to find a new one, it’s problematic, because in that year your profitability will be poorIn the meantime, you can’t suspend your credit, even if it’s something that can still be negotiated.
You go to meilleuragents.com, a real estate agent’s website designed to check the price of a property, the price per square meter, whether it’s a house, an apartment, even parking lots. You can also check the so-called population index, i.e. whether the town for which you have entered the zip code is increasing in population from year to year, or declining. So it’s a very important demographic index, because if you want to invest in a city in decline, you’ll have a constant number of rental units, because in a city where there’s no more construction, it will unfortunately gradually empty out. Just as if you had a very large company that had moved, or closed, or relocated to a foreign country etc., it’s not necessarily a good idea to invest in it.
The best trick in the book, and one that’s starting to make a name for itself, is the fake ad. In other words, you take photos on the Internet, put a fake ad on Leboncoin for a week with all the criteria for the apartment you’re going to have, the floor, the approximate address, etc., and see how many clicks, e-mails or calls you get on the ad. You also try to keep a record of the tenants who contact you. Do you have people who are solvent, who meet the unpaid rent rule, i.e. the last three pay slips? This allows you to filter as much as possible to get the best visibility on your real estate investment. You can even include this prospecting stage in your financing application.
Once you’re in front of a banker, you’ll have a file that proves the depth of your research and study, and you’ll be able to assemble your file with a summary of the three techniques you’ve rigorously documented. Is there any rental tension, how is the demographic index and the result of your fake ad on Leboncoin.
You’ll have a really sound, complete market study, and you’ll be able to reassure your banker, who will be confident about lending you money, so you’ll have every chance on your side!
Daniel Blanchet écrit pour le magazine TIH-Business depuis 2018. Il est spécialisé dans la finance et l’immobilier. Daniel est également un traducteur professionnel, ayant traduit de nombreux livres sur des sujets variés.