Rental property is a good investment, especially in the current economic climate. Buy-to-let mortgages are available from lenders such as Clydesdale Bank, and it is best to know the key factors that effect rental property before you buy. Here are 10 things to consider.
2 Know your locations to see what is currently out there. The neighbourhood is at least as important as the building itself.
3. Know what you can afford in terms of property improvement. How much work does each property require to make it appealing to tenants? Can you do some of it yourself?
4. You should look at the amount of listings in the neighbourhood. Frequent listings may be a sign that the area has high turnover. This may be because it’s not a good place to live.
5. Look for properties that will easily withstand wear and tear. This will make dealing with tenants much more pleasant. You will not find yourself fretting about delicate historical gems whose beauty can be easily undone by routine day to day activity. Neutral decor is appealing to prospective tenants.
6. Become familiar with procedures concerning rent collection, handling tenants and evictions. Understand what you are getting into. You may find that letting out property is not for you. It’s best to know before you buy.
7. If you are buying property where you intend to live on site and let out a spare room, know how your taxes will be impacted. You can find out more about this at www.gov.co.uk
8. Talk to a lettings agent. You can find a reputable one at the Association of Residential Letting Agents.
9. Now is a good time to be a landlord. The young generation is trending toward renting rather than buying. This may not be the case forever. Keep this in mind. If you are no longer able to find tenants you may be stuck with a property you can’t sell and don’t need.
10. Get a survey that adequately assesses the building, especially on older structures.
With the right research, luck and financial investment, this can be a good way to get a return on your money. You will be offering what is in demand and seeing monetary rewards.