With the rental market booming across most parts of the country, now is a great time to become a Buy to Let landlord. Even with the higher taxes now involved in buying rental properties, letting homes out to tenants is still a great way to boost your income, add to your property portfolio and build a solid financial base for the future.
1. Find an agent you can trust
A good letting agent will make your life a lot easier. Finding good tenants, fixing problems and ensuring your rent is paid every month, a good agent is worth their weight in gold.
2. Look after your property
The better you look after your property, the more your tenants will respect both you and the home they’re living in.
3. Find good tenants
Good tenants will make the world of difference to your experience as a buy to let landlord. Taking the time to find tenants that will look after your home, pay their rent on time and notify you of any problems will be worth it in the long run.
4. Beware low mortgage rates
Though rates are exceptionally low at the moment, sooner or later they will begin to go back up. In order to ensure you’re not caught out by an increase in mortgage payments, try not to stretch yourself too thinly or take on a mortgage that would cripple you if the rates increased by just a small margin.
5. Inspect your property
It’s important to keep a close eye on your rental property to ensure it’s being kept in good condition.
6. Keep in touch with your letting agent
Build a strong trustworthy relationship with your letting agency. If they know they can get in touch with you whenever they need to, any problems with your property or your tenants will be solved quickly and efficiently.
7. Buy in an area you know
In depth knowledge of the local area will help you to find a property that’s desirable and one that is likely to increase in value over time.
8. Research the market
Even if you’re familiar with the area, it’s important to find out how the local property market has been behaving. Take the time to do your research, focusing on rental yields, property values and other factors like good schools, crime rates and transport links.
9. Choose your mortgage carefully
Buy to Let mortgages can vary dramatically between lenders. Make sure you shop around for the best deal and talk to a mortgage advisor to see what else is out there.
10. Know the pitfalls
Though there is still money to be made in Buy to Let properties, there are potential pitfalls you need to consider as well. Knowing and understanding these risks will help you be prepared in case your plans don’t work out as they should.
To find out more about managing rental properties, get in touch with us today.