Landlords – Buy-to-Let Top Tips
Buying a property for the purpose of letting it out can be a rewarding and profitable investment strategy when done well, but like all investments it is not to be approached without proper care and preparation. The following tips, in particular, can help you make the most of your buy-to-let investment.
Choose a Property Carefully
Don’t just buy any old property, even if it is good-quality. Think carefully about not just the quality of the property itself but other key factors, especially location. You should also think about what kind of tenants this property type is most likely to attract, and whether it has not just a good location but the kind of location that kind of tenant looks for. For example, a quiet street close to schools is great for a property that will attract mostly young families, but not as good as being close to commuter links if you are buying a small flat of the kind favoured by young professionals. Making a profit on buy-to-let depends on having a property that will attract tenants and be tempting enough to make them pay a good price. In looking for good locations, don’t think you necessarily have to buy a local property; it is entirely possible to invest in a property located miles away from your home.
Do the Maths
It is definitely worth going over the numbers in a fair amount of detail before going in for a buy-to-let investment. Weigh the cost of mortgage repayments, professional fees and tax (bearing in mind that changes to tax for landlords are due to take effect over the next few years) against the monthly rent a property is likely to attract. Bear in mind there will also be ongoing costs associated with maintenance. On the positive side, don’t forget that you may profit from increases in property values as well as purely from rent. While there is always some degree of risk and uncertainty involved, it is important to crunch the numbers in order to decide whether a particular property or even buy-to-let on the whole is going to be a profitable and worthwhile investment for you.
Use Reliable Professionals
You will likely deal with a number of professionals over the course of your buy-to-let investment. During the purchase process, it is important to use a reliable, skilled specialist for conveyancing. This will ensure the various legal and administrative processes involved in a property purchase proceed smoothly, properly, and as quickly as is reasonably possible. Unless you are willing to make your property a very hands-on investment, you will likely also use a lettings agent and finding a good one can make all the difference. You may also want to deal with an accountant, either regularly or simply to carry out your tax return once a year.
Know your rights
It’s not something that most like to dwell on, but with the possibility of having awkward tenants, it’s always worth while knowing your rights. In certain situations,it’s worth employing a solicitor such as N Legal (I’ve used their services previously, they’re very good and reasonably priced), who are able to evict tenants for you if you find yourself in an unfortunate situation.