Property Tips for New Landlords
Becoming a landlord can certainly pay off. Once the safety checks are completed and all the paper work is drafted up the hard work is returned in the form of regular income. It’s a good investment of your money, too, so buying to let is an excellent opportunity that is often too hard to resist.
There are an increasing number of tenants looking for homes to rent, and as demand is high you can charge a reasonable amount for your property. However, if you’re looking into becoming a landlord you will benefit from doing extensive research and following the tips below to ensure the ride is a smooth one.
Sort Out Your Finances
Work out what you can afford when you buy to let. Deposits and rents all vary and you will need to ensure the amount of rent you’re able to charge will cover your costs. Don’t start looking at properties or different locations until you have gone through all the financial side of being a landlord so you don’t overspend and lead yourself to trouble.
Don’t Always Believe the Hype
You may be drawn to a certain location because there is a lot of hype surrounding the area. The promise of large investments and huge developments doesn’t always work out as expected. Don’t feel like you have to find an area that’s up and coming, there are plenty of other opportunities out there. So long as you’ve done your maths and researched into the area you will be on the right foot.
Identify What Tenants Want
You will need to research into what tenants expect to find in a property for rent. If you develop the property with their wish list and expectations in mind you’ll be able to charge more money and hopefully wind up with a long term tenant. Renting out to a long term tenant is the ideal scenario to aim for. It saves time and paper work and ensures you’re receiving a regular income as a landlord.
Consider the Development of the Property Carefully
Adding a brand new kitchen with all the modern conveniences and gadgets will make your property appealing but in reality it will only add on about £20 per week in rent. You need to consider if it is worth paying out for such a fancy kitchen or if a cheaper alternative will suffice.
Be Prepared to Be Called Upon
There are plenty of tenants out there who are demanding. They will call you to fix a number of small jobs that you may think they could cope with themselves. Then there’s the risk of more serious issues arising that will also need your attention. You need to be prepared to be called out in emergencies and for smaller jobs. If you’re concerned about this, work with a lawyer to clearly state who is in charge of dealing with small maintenance jobs such as changing light bulbs or cutting the hedge.
Have Money Set Aside
You may have periods of time when your property is left vacant. During these times you’ll need to cover the mortgage and take care of the property. There’s always a risk of squatters finding your home so it is worth using services that will take care of your property until you find another tenant. These services are worth the money, click on the link to learn more information on costs.