Are you thinking about becoming a Landlord? Now would be the perfect time to build your property portfolio. Property prices in the UK have taken a little swim into the ocean of spending, so you may be able to pick up a bargain and rental properties are moving the fastest they have in years, with them spending hardly any time on the market at all. Building a good portfolio takes time and resources, so get in there early while you can!
There are lots of things to think about when looking at buy-to-let properties. The location is one of the most important factors for you to consider. Properties closer to the railways and public transport are desirable for prospective tenants, people need to commute to work and so on.
How large the property is also very important. It will be one of the factors which determine your purchase price and your rental amount. Speak to a property expert like Mike at Norfolk Property Management to see out what type of property is highly demanded in your area. Some areas may have lots of 2 bed houses on the market, but not very many 1 bed apartments. The area you choose may appeal more to young single people, so smaller housing may be in demand. Researching rental amounts online will give you a good idea of the sort of income you can expect.
When you rent a house, it needs to be in a good and liveable condition and meet local regulations and UK laws. Buying a house that needs work, will mean you need to consider the cost of rising it up to those standards so it can be let out, otherwise you can end up with extremely unhappy tenants, and long periods on the market. Properties that need to be modernized, often sell for less money than those that don’t, so if you have good contacts in the building trade, or you enjoy DIY, this could be a good way to bring you return on investment up as high as it can be, a little bit of extra work can go a long way. The key to success in this area is to view any potential purchase thoroughly.
Time is money. Don’t spend too long getting your property ready to let. The mortgage will still be payable, regardless of whether the property in empty or not. Get the work done quickly to avoid making a loss on your investment, though don’t rush it in quality. Don’t cheap out, hire a contractor to take care of the renovations if it’s not something you are familiar with. Most properties will need a lick of paint before you let them out, so think about taking a course on decorating to save time and money, or again, use a contractor.
When your property is ready, you will want to get tenants in as quickly as possible, so your mortgage is covered, and you have piece of mind. Using a letting agent saves you time, money and hassle. They often have a pipeline of tenants waiting for properties. They are also experts in marketing and advertising to attract the best tenant for you. While they manage your tenant for you, it frees you up to find the next property for your growing portfolio.
And it’s as easy as that!