An Introduction to Supported Living as a Property Investment Strategy
There are many different strategies to consider when investing in property. From capital flips and commercial developments, to buy-to-lets and serviced accommodation. Another strategy growing in popularity is supported living, with many local authorities wanting to adopt this strategy.
There are so many great benefits of investing in supported living property. Not only do you generate a good return on your property investment, but you can also make a huge difference to other people’s lives by providing them with good-quality homes.
To help anyone looking into this investment strategy, our team here at Fielding Financial have put together a guide covering the basics.
What is Supported Living?
Supported living is a living arrangement for a tenant who has support needs. This can be anything ranging from mental health to a physical disability. Typically, the tenant holds their own tenancy with a registered provider and the care is provided separately to the tenancy. This provides the tenant and their family with the opportunity to move home without changing their care provider and vice versa.
Supported Living provides greater flexibility for those with long term support needs but can also be an option for those with shorter term support needs.
Types of supported living tenants can include:
- Learning disability
- Teenage parents
- Physical disability
- Mental health
- Domestic abuse
- Care leavers
- Recovering from addiction
- Asylum seekers
Is there demand for supported living in my area?
There are many different types of tenants you could help through your supported living property. Before viewing potential investment properties, it is important to speak to registered providers, charities, and care providers to understand the areas that are in high demand as well as the facilities that need to be nearby.
Is my property suitable for supported living?
Depending on the type of tenant and charities you are working with, you may have to make adaptations to your property to make it suitable for a supported living tenant.
Will I be paid less if I let it to supported tenants?
No, sometimes you will even get a premium for providing housing for vulnerable tenants. Something else to consider is that a longer-term lease is normally taken on the property (between 2 and 10 years), so there are no void periods or letting agent fees to consider.
Learn more about supported living as a property investment strategy
There are lots of things to consider when investing in supported living homes, so it is important you get educated.
Want to learn more? If you’re interested in learning more about Supported Living as a Property Investment Strategy, take a look at our brand-new online course with Lisa Brown and learn how to implement this exciting new strategy.