The buy-to-let market is booming. As more and more young people struggle to build up the deposits they need to afford their own homes, they are turning increasingly to rented accommodation. If you see yourself as something of an entrepreneur or simply want to create a new source of income for your family, becoming a landlord could be a great idea. In this article, we’ll look at some of the things you’ll need to consider and how to get the best from the experience.
One of the best ways to learn how to become a landlord is to listen to others who have been there and done it. The National Landlords Association, for example, is a great way to meet landlords and letting agents and get trustworthy advice based on years of experience.
At some point, you’re going to need to decide which type of property to let. Perhaps you already have a property or perhaps you are looking to invest in a property. Speak to a lettings agent in the first instance to see which type of properties are in demand and which areas have the most demand. This can give you a good idea of the type of property that will not only be easy to let today, but long into the future. For example, if you let out a property near a university or hospital, you will no doubt have many students and hospital staff looking for accommodation all year round.
Doing your property and area homework will also give you a good idea of the rate of rent you can comfortably expect. If you are considering a buy-to-let mortgage, seek the advice of a mortgage broker to help you to find the best rate of interest. You should also think about the amount of profit you can generate once the mortgage payments and any other charges are taken into account.
Once you have decided on the property you wish to rent out, ask yourself this question - would you want to live there? If the answer is no, then it’s time to take action and prepare your property for the first tenants. In addition to decorating and making each room presentable, you will need to consider safety aspects of your property, such as the boiler, electricity and whether there is any condensation or mould that could potentially cause health issues. All of these things should be in order before you put your property on the rental market.
Many landlords choose to use a lettings agent to handle the administration and management of their rented property. From arranging viewings and drawing up paperwork to managing rental payments and dealing with any issues, a lettings agent can do much of the hard work for you.
If you are considering renting out your first property, we’d be delighted to tell you more about the properties we have available and how to land your first paying tenant.