Buy-to-let is a hot topic at the moment, with more and more people choosing to become landlords.
Average gross rental yields are far in advance of the interest you can earn in a savings account, but with that comes a challenge.
Here are some top tips on how to be a winner from the buy-to-let boom:
– Always research the market;
Check local rental conditions and determine the types of renting in your area. Look for tell-tale signs that there’s a healthy rental market, like large company relocations, the opening of young/upmarket bars and shops. Don’t forget to consider the proximity of good schools and choose property with features that will appeal to the general market.
– Decide on your target tenant;
The kind of tenant you are hoping to rent to will influence the location and type of property you buy. If you want to let to students, it will need to be close to the university or at least have good transport links to it. Don’t worry about luxury – it just needs to be clean and comfortable.??Families, on the other hand, are likely to have their own furniture and belongings so they will be more interested in ‘blank canvas’ properties which they can rent over a longer time period.
– Ensure that the property is in sound condition;
It seems obvious but it’s worth a reminder: Buyers should always visit all properties, pay for an independent survey and get a solicitor to check the paperwork.
– Account for every penny:
Before you buy, make sure that the sums add up and don’t forget any extra ‘hidden’ costs. As well as mortgage repayments, think about landlord insurance, gas safety certificates, maintenance fees etc. Look ahead too and don’t just look at the present and near future. Try to calculate projections for five, ten, twenty years’ time.
– Brush up on the Green Deal:
The Green Deal is a government initiative aimed at improving the energy efficiency of properties, through the installation of energy efficient boilers, double glazing, draught proofing, loft or cavity wall insulation to name a few. Under the Green Deal, landlords will be able to make energy efficiency improvements to their properties without having to pay for them upfront. Tenants will repay the cost of the measures through their energy bill savings whilst enjoying a more energy efficient home.
– Consider using a letting agent to manage your property:
Agents can handle a range of letting-related jobs, charging commissions based on the level of workload that they take on: from simply finding a tenant through to fully managing the property. Therefore the right choice of letting option for any landlord depends on the level of responsibility, time, energy & risk that they personally are prepared to take on, compared to paying for a letting agent to do it for them.
– Take your time:
Investing in several properties can spread risk, but invest in too many of the same type, in the same area and you may risk oversupplying the demand.
If your first buy-to-let investment has gone well and you’ve caught the property bug, keep a level head about investing in more. Remember the points above, think carefully about your next investment and thus reap the rewards of buy-to-let investment.
If you are an existing landlord or potentially a first time landlord get in touch with Belvoir Sheffield today to take advantage of our vast expertise and experience to ensure you are getting the best advice. Contact us today on 08452 60 40 90 or email us at sheffield@belvoirlettings.com
Source: http://bit.ly/SvIpf6
