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If you are contemplating investing in property for rent, there is much to consider. This is not something to rush into, and with some careful planning and forethought, you should make absolutely sure that you have covered everything in your planning. Once you become a landlord, they are many liabilities that come with the territory, which includes property maintenance and renovation, and with that in mind, here are a few tips to help you make the right choices.
- Choosing the Right Property – One should never rush into any property purchase, especially when buying to let, and your choice of location will very much determine the rental you can charge. If you are patient and have some professional advice, you could buy a property at a very good price, which will increase the asset value over time. Make an offer that is low, after all, you can always increase it if necessary. Some people are desperate to sell, and will often take a low offer, rather than wait for a better price. In your quest for specialist conveyancing lawyers, an online search is the easiest way to make contact with the right law firm, and preferably one that has experience in buying to let.
- Crunch the Numbers – It is essential that you enter into this business knowing exactly how much it will cost. Aside from the cost of acquiring the property, there will be things like stamp duty and legal fees to consider, not to mention any renovations needed to get the property up to scratch. You should also calculate the amount of rent you can receive and balance this against the running costs, which will be considerable. Most people engage the services of a property management company, who can handle all maintenance and repairs, while also finding suitable tenants.
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- Know the Law and your Responsibilities – As a property landlord, you have many liabilities, not least ensuring that the property is in good order at all times. You will have to compile a rental agreement, and you are best advised to have a property lawyer help with this, who can ensure that your best interests are represented in the legally binding rental agreement. There is also an informative article on tips for buying a rental property, which is recommended reading for anyone who is thinking of investing in this way.
- Choosing a Mortgage – Unless you happen to have a huge inheritance or won the lottery, you will need to finance the property acquisition. By enlisting the help of an independent mortgage broker, you can source a home loan that suits your lifestyle. The broker’s services are free to the buyer, as they receive a small remuneration from the lender, and as the broker is not tied to a single lender, they can shop around to find a loan that best suits your needs.
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It is essential that you approach this in a business-like manner, and by creating a business plan, you can cover every eventuality and be prepared for the many bills that come with owning a rental property. Seek out the help of an established property management company, who would be very experienced and can take on most of the liabilities on your behalf.