Buy to let properties here’s what you need to know
Looking to invest in a buy-to-let property? Then there are a few things to consider first, to learn more read more
Looking to invest in a buy-to-let property? Then there are a few things to consider first:
Know your tenants
Before investing in a property know your likely tenants, consider if you’ll be letting to young professionals, students or providing accommodation at the luxury end of the market. Then think about what property would suit your tenant, consider how much space they will require and what standard of specification.
Know your location
Then give thought to your location, you’ll need one with a healthy rental market – so look for areas where the rental rates are higher than average, as this tends to indicate rental property is in demand.
Don’t expect to make a quick profit on your buy to let investment, think of it as a long-term investment that will bring in a regular income for you, rather than something that will rise in value quickly.
Cover your costs
Ensure the likely rental income will bring in enough funds to cover your costs including any mortgage and a potential rise in interest rates. Also, have enough of a contingency fund in place to see you through a few months without a tenant or any maintenance work necessary. All investments carry an element of risk and can go down as well as up in value, being a landlord isn’t always plain sailing, so go into the venture with your eyes open and have some contingency funds in place.
Will you be a proactive landlord?
Also, give thought as to whether you want to invest in a property that requires doing up or whether you’d prefer one in turn key condition so you can let it out straight away.
Some landlords believe there are greater profits to be had by investing in properties that need work, but do you have the time, skill or resources to take on a project?
Letting agency on hand?
Once your property is in a suitable condition, consider if you want to be a hands-on landlord that manages your properties or use a letting agency to do it for you. Enlisting the help of any agency will take the weight off your shoulders, meaning you’ll be free of onerous tasks like carrying out reference checks. However, there will always be a fee involved – so the choice is up to you - more time or more responsibility?
Don’t scrimp on insurance
Also, make certain you have suitable insurance in place. Talk to an experienced insurance broker to find the right cover for your property and circumstances; some will now even cover the loss of rent – putting your mind at rest.
Paperwork at the ready
Keep careful records, from your costs to the rent you’ve received. Ensure all of your paperwork is up-to-date and in place, so if you ever have a query or dispute to deal with, the information is always to hand.
Keep up-to-date with regulations
Another factor to bear in mind are changing regulations and how they affect you as a commercial landlord, from your responsibilities to your tenants to the tax you pay. So be sure to keep up-to-date on any developments.
Not sure where to invest in property? Then try renting in Monaco first, while you’re