Top tips to becoming a successful landlord
Entering the buy-to-let market and buying rental property can be a good investment. However, as with all investments, it makes sense to seek expert advice before committing your money. After all, they have the experience, they know the pitfalls.
Here are our ten top tips for landlords:
1 - Look around the area you are planning to buy in and research the market. Estate agents and letting managers will be able to advise you on rental levels and demand.
2 - Make sure you put together a budget and stick to it. Obviously you will probably want enough rent to cover your mortgage costs. But you must remember to include service charges (for flats), repairs and running costs.
3 - If you find a property but you are not sure about rental demand in the area then run an advert in the local press. If no one calls then do not buy it.
4 - University lettings can be a good way of ensuring demand. Talk to yourlocal university Accomodation Officer. Explain to them about where you are planning to buy and find out current rental amounts and demand.
5 - If looking at areas where there is a lot of new developments make sure that supply of property does not outweigh demand.
6 - Join a local landlords association. They can keep you up to date on all the latest legislation including Home Information Packs (HIPs) and Tenancy Deposit Schemes.
7 - When taking on new tenants remember to take at least 5 weeks rent plus one month of rent in advantage. That way if the tenant cancels their standing order a month in advance of leaving then you have still got money in case of damages.
8 - Choose your tenants carefully. Meet them in their own home when completing the rental agreement. If their home is in good condition then hopefully they will treat your property the same way.
9 - Provide new tenants with a detailed inventory. As well as including furnishings remember to state whether carpets have been cleaned or the decoration updated. The more detail you supply will result in less disputes with tenants.
10 - Choose a good buy-to-let mortgage broker and build a relationship with them. A good broker should help you build a business plan for the future to make sure you are gaining the most from your properties, whatever the state of interest rates or market conditions. They should not just be selling you a mortgage.
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