When people are unable to get onto the property ladder or uncertain about moving, they end up renting for longer periods. This surge in tenant demand leads to more competition for rental homes, and therefore, higher rents as we are currently experiencing.
Landlords can end up making a tidy profit, which encourages them to expand their property portfolios. A buy-to-let bounce-back also entices new buy-to-let investors to put their money into property as well as some people finding themselves becoming accidental landlords.
Below and on the following link are a few key points for those looking to get into buy-to-let.
Modernised properties tend to let quicker and for more money than older homes.
Check tenant references thoroughly, including credit checks and guarantors.
Always clean and redecorate after a long tenancy.
Don’t be greedy. It’s better to hold onto a good tenant paying a sensible rate, rather than ousting them in the hope of someone (probably more demanding) paying more.
You might find yourself competing with other buy-to-let landlords if you buy on a big development. Either make your property stand out, or consider buying on a smaller site.
Choose locations near good transports links, a variety of employment and appealing shops and restaurants
Talk to a financial expert as it might be less expensive to remortgage your own home when borrowing money for buy-to-let, rather than getting a buy-to-let mortgage
Match the tenant to the area. If you live near a good state school, for instance, you could do well renting to families. Young professionals are attracted to areas with lively bars and a good arts scene.
When choosing a lettings agent, make sure he or she is a member of the Propertymark Scheme (Propertymark) or Association of Residential Letting Agents (ARLA).
Look for the next ‘hot spots’ where regeneration, new transport links and employment opportunities are in evidence. The new Busway linking Luton to Dunstable and Houghton Regis is due to be completed in August/September and will slash the travelling time by bus. See our other article here ‘The New Busway transport link’.
New research shows that period homes hold their value better than new-build property.
Factor in extra cash for maintenance (if you don’t replace that worn carpet every so many years you won’t get a quality tenant).
For more impartial and free advice on Buy to Let and any of the above contact Daniel or Zara at Belvoir Dunstable.
