At Fresh Invest we know the importance of being fully prepared when it comes to investing in buy to let property. So, we have put together a few top tips that you should consider before becoming a landlord.
When searching for the perfect buy to let property, location can be an extremely important factor. Start by having a clear understanding of who you want your rental property to appeal to. Once you have established this, research areas with your potential tenants in mind. It is easy to be drawn to property that suits your personal tastes. Try, instead, to focus on selecting a property that will appeal to prospective tenants. Personal taste is not always what is going to bring in the strong rental return.
Put yourself in the shoes of your potential tenants. For example, if you are planning to rent to students, consider property close to a university and nightlife. If renting to families, look at areas with good schools, making sure there are accessible transport links close to the home. A key factor to consider is whether you are going to fully manage the property yourself. If so, you may want to invest in a property close to where you are based, so that you can easily resolve any tenant issues quickly and without too much inconvenience.
Deciding to become a landlord is exciting, however, just like any form of investment it is important to understand the risks. Having a good grip on your finances is crucial when investing in buy to let property. It seems obvious, but you need to consider all costs that come with purchasing a home; deposit, legal fees and stamp duty to name a few. Once you have bought the property, you should still make provisions for costs such as letting agent’s fees, and unanticipated repairs and renovations that may need to be carried out.
It is not always an easy life being a Landlord. Once you have started renting your property, you have important legal responsibilities. Take time to research the safety certificates and assessments that may need to be carried out in your home, from Gas Safety Certification to ensuring electrical appliances are safe. Complying with these regulations is important, not only to avoid a substantial fine, but it is vital to ensure the safety of your tenants. As a Landlord, you should also be aware of tax implications. You will need to declare rental earnings through an annual Self-Assessment tax return.
Being prepared, and feeling confident and in control, is important when it comes to renting your home. We have all heard stories of unruly nightmare tenants. It can be frustrating, extremely stressful, and something you can never be fully prepared for. However, if you take the time to investigate the legalities surrounding these buy to let horror stories, you will feel confident knowing your rights as a Landlord. Protect yourself by taking out appropriate insurance and do your homework; know who you are letting your property to. Preparing for, and preventing, as many obstacles as possible will ensure you get the most out of your Landlord experience.
In a nutshell, before you embark on property investment, do your research.
Fresh Invest is a full service property investment consultancy. Please get in touch if we can help with your property investment queries.
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