You’re investing both time and money into a buy to let property so make sure that you are aware of potential pitfalls. Ensure you understand that being a landlord means you have certain legal obligations because failing to comply could mean you commit a criminal offence. Property prices have shown historic rises and can be a lucrative business when done correctly. You can also get in touch with our expert letting agents to help you.
• Keeping the property in a decent (habitable) state of repair
• Annual safety checks
• Registering tenant deposits, smoke alarms legislations and correct documentation proof
• Recovering rent or evicting tenants if something goes wrong
• If you need a mortgage, then you should obtain an agreement in principle from your chosen mortgage company at an early stage.
• This will prove your eligibility for this type of mortgage and clarify how much you can borrow.
You will be responsible for maintaining your property and making sure it is safe for a tenant to live in.
You will also want to consider any costs, like advertising the property is available for rent, or if you decide to use an estate agent to manage the property. Also remember to factor in the original costs, like Stamp Duty.
If you are planning on being a landlord directly, without a property management company, then it is worth considering the value of your time as well. Whether that’s finding tenants, dealing with paperwork, ensuring compliance, legal subscriptions or arranging for maintenance such as replacement boiler. We are always on hand to help, get in touch with our expert letting agents today.
Part of your research must include looking for the best areas to rent out properties which might not be in the area where you currently live. Buy in an area which is attractive to tenants and where there are sufficient people who will want to rent. If you are looking for more help, please do not hesitate to get in touch with our specialist letting agents. We are always on hand to help.
Just as a business must know their target market (who they’ll sell to), you must identify your own prospective tenants so that you can ensure that your property is attractive to them, which in turn will make prospective tenants want to rent from you. For example, the needs of a professional couple will be different to those of 5 university students in everything from how much rent they will pay to what fixtures they will expect you to provide. We always ensure that properties rented out are initially well maintained and hazard free. If works are required it is fundamental to attend to them before the tenant moves in. Also, the rentability of your property will be affected by the décor of the property, most good tenants’ aspect a certain standard.
Once you’ve found the property you’re looking for, don’t be afraid to haggle over the price. As this is an investment do not worry over the layout, price or décor. It is purely to ensure there is a market for the property and also that your figures will add up to a positive cash flow.