One of the best things I love about my job as an agent is helping Walsall landlords with their strategic portfolio management. Gone are the days of making money by buying any old Walsall property to rent out or sell on. These days, property investment is both an art and science. The art is your gut reaction to a property, but with the power of the internet and the way the Walsall property market has gone in the last 10-15 years, science must also play its part on a property’s future viability for investment.
As a property professional I use many metrics (as do others), when deciding the viability of a rental property i.e. the price, the average rent, the yield and one you may not be too familiar with is – an average value per square foot.
However, another metric I like to use is the average rent per square foot. The reason being is that it’s a great way to judge a property from the point of view of the tenant … what space they get for their money. Now of course, location plays a huge influencing factor when it comes to rents (and hence rent per square foot). Like people buying a property, tenants also have that balancing act between better/worse location, more vs. less money and size of accommodation (bigger and more rooms equalling more money) and where they live (location) verses making ends meet.