6 Tips For Potential Landlords

Are you going to become a

landlord? Here are 6 great tips…

Research the market

Buying-to-let can be a huge gamble therefore it is important that you do

your research before you invest your money.

First of all, it is vital that you are making the investment that you

want. Who knows, in years to come your property may fall in value which means you won’t ever

make a profit.

Investing in the buy-to-let market involves committing thousands of pounds into a property and most

likely taking out a mortgage; therefore get online or speak to others who have invested in the

property market.

Don’t jump straight into the first mortgage you see

Why do you think banks make so much profit per annum? One of the reasons is

because people take out mortgages without doing their research – and can’t

pay them back.

Considering different banks and building society’s is key to taking out a viable

mortgage. It’s worth speaking to a good, trustworthy independent broker – or even better, speaking to somebody you know

who has been through this process.Surfing the internet will also give you tons

of option.

Carefully choose your area

One of the most important decisions you need to make is the location of your

property.The best piece of advice to give is to not

base your area on it being ‘cheap’ or ‘expensive’ – base it on a place people want

to live.

You need to consider things like; What are the schools like? Does it have nearby attractions? Has it got

good travel links?This also refers back to research – where does your target audience

WANT to live.

Choosing your area also links too choosing your target audience – you wouldn’t invest in a property in the countryside if you were

targeting University students.

Consider your targeted tenants

Many of those who failed in the buy-to-let business is simply because they didn’t

research their audience. It’s simple, for a successful letting – it is vital that you find

the right tenants.

Put yourself in your target audiences’ shoes – What are they looking for?

Where about is best for them to live? For instance, a student from

Birmingham University wants student accommodation in Birmingham – not

Solihull.

When you consider your target tenants, you should also consider the

interior of your property. If you’re targeting students, than you want

something clean and comfortable but not luxurious. However, a young

upper-class couple is likely too prefer a slick, spacious and modern home.

Finally, bare in mind that for your tenants to stick around, it’s likely

that they’ll want to put a stamp on their home. Letting them move furniture around, decorating or

adding photo’s are small allowances which will make all the

difference.

How hands-on do you want to be?

If you’ve decided that your definitely going to buy-to let, then your next step is whether your

going to rent it yourself or do so through a Letting Agents. Both ways have their

advantages and disadvantages so again, it’s important that you do your research first.

Renting yourself can be advantageous because you avoid paying fee’s to a letting agency and make more money off the rent itself. However, renting yourself can add unnecessary stress – first of all you must be prepared to give up most of your time, with likely unsociable hours, to participate

in viewings. Also, you would have to arrange your own advertising and repairs.

Agents on the other hand; although they charge you a management fee,

they will deal with your problems such as repairs as they will have close networks with plumbers,

decorators etc.

Consider looking further afield and/or renovating

Many investors seem to look in areas near to where they live however, your

town may not be the best area to generate a good profit margin.

The benefits of casting a wider net are endless for a number of reasons. For instance, you as an investor may live

closer to rural areas rather than the city – whereas many tenants are more likely to be located in the city. Even though you may be far from the property, hiring an

agency will benefit you as they can keep their eye on it.

In addition, renovation can be very profitable for investors. By doing a property up, your

increasing the value of your investment and also advertising a more attractive, current property which will draw in a much wider audience in comparison to a dull, dated

interior.However, remember that if you do, ensure that the price is low enough not to further

yourself in debts that can’t be made back off tenant rent.

We hope you found this blog helpful.

Any questions? Go ahead and contact us:@GlocalR (Twitter & Facebook)

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Thank you.