Purchasing a buy-to-let property can be an excellent investment, however there are certain mistakes that are made quite often and should be avoided at all costs.
At Belvoir, we want to make sure that you make the right decisions for your investment, so here are some commonly-made buy-to-let mistakes that you should avoid.
Choosing the Wrong Property
The most crucial mistake made by property investors is choosing the wrong property to purchase and put up for lease. You should invest in an area with clear demand and in a property that would be well suited and affordable for your ideal tenants.
Remember, this property is not for you. Put to the back of your mind what you would want the property to look like and instead think of your tenants. If you’re not sure where to start, talk to a local letting agent and get some advice before settling on a property.
Not Checking Your Tenants
Although you may trust the applicants, it is still of vital importance that you obtain references, confirm employment and carry out credit checks.
If you are with a reputable letting agency, these steps can be carried out for you. This will help you to make the right decision on who you allow to lease the property and give you more security in terms of collecting rental payments on time and in full, as well as ensuring that the property will be properly maintained.
Not Understanding Legal Obligations
As a landlord, you have a set of legal obligations that you must fulfil. If you don’t understand these and ensure that your responsibilities are carried out, you could face serious consequences.
These obligations include maintaining legal safety standards, treating your tenants fairly and fulfilling your taxation obligations.
If you are unsure of your legal obligations as a landlord, speak to your letting agent, who will be able to take you through the process step by step.
Now that you are aware of these mistakes, you can ensure that you avoid them. The best way to ensure that your buy-to-let investment is a success is by enlisting the help of a reputable letting agent, and if you are looking for a letting agency in Sutton Coldfield, Belvoir can help you with every step of the letting process. For more information, contact us today by calling 0121 321 3388.
