According to a major lender, two thirds of landlords opt for those properties that are in mint condition when buying to let even though it will cost them nearly half as much, (43% - £58,500 on average) than a property that needs considerable renovation work.

The bank's research shows that 48% of landlords own just the one buy-to-let property and that at least a third of them are looking to buy more.

The top of the wish list is for a two bed roomed flat with nearly a quarter of landlords looking to add a second property, with 65% wanting to purchase a property in good condition and only 35% ready to take on the challenge of renovation.

Two bed roomed properties that are tenant ready, cost on average £194,599 whereas those needing renovation the average price is £136,042.

The bank's research shows that landlords who have bought a buy-to-let property in good condition which does not require renovation, will achieve an average yield of 5.4%. This is 1% higher than those properties purchased which required a high investment to be tenant ready.

Throughout two thirds of cities in the UK, those properties that can be moved into immediately will achieve higher yields so it is a wise choice for landlords to take this route.

Peter Dockar, head of mortgages at the lender said: “Ready-to-move-into properties are often the savvier choice for landlords looking to purchase additional BTL properties. Not only does this avoid the need for lengthy and expensive renovations, it can also result in higher yields in most areas of the country. While the initial purchase price will be significantly higher, rental returns are also improved, making monthly mortgage and maintenance costs more palatable.”

£872 per month is the average rent for properties that have two bedrooms and are in pristine condition. The difference between these types of properties and those which are not in a good condition is staggering - 75%, as their average rental income is £498 pcm.

Leeds offer some exceptional gains for those landlords that own properties in mint condition and they can expect to achieve £675pcm for a two bed-roomed property. Those which need refurbishment will only yield £327pcm.

 

In the most expensive and sought after areas in the Capital, renovated properties can yield an average monthly rental income of £1,891.

Dockar added: “The choice is clear for landlords hoping to make the most out of their buy-to-let investment: either purchase or renovate a property to good condition or risk lower rental income and reduced overall yields. Maximising return on investment is crucial for landlords hoping to add more properties,”.