Many people in the UK are now choosing to rent rather than buy. This is due to a number of factors, including higher mortgage rates and wage growth continuing to lag behind rising property prices. If you have ever thought about investing in property to let, then now is a great time to do it. Bearing this in mind, below are some of the key steps involved in becoming a landlord.
Why invest in property?
There are two ways to make a profit as a buy-to- let landlord. The monthly rent you receive will generate ongoing revenue, while capital gains can produce a large lump sum when you decide to sell the property. There are, of course, risks associated with both of these practices, but long- term they offer excellent money-making potential. To negate the risks, it’s good practice to budget for your property being empty for two months of the year. This should give a buffer should the worst happen and the property is uninhabited for a prolonged period.
What costs are involved for new landlords?
As well as the initial investment, there are ongoing costs associated with letting a property. These include:-
- Letting & Management Agent fees
- Mortgage repayments
- Landlord insurance
- Annual safety checks
- Building maintenance
- Income tax
Location – Location is always important when purchasing your property. Choose a promising area, promising does not mean most expensive or cheapest but a place where people like to live and this can be for a variety of reasons. Consider your target market and bear this in mind when choosing your property. If you are in a commuter belt where are the most popular transport links? For young families where are the best schools located? Property type – The type of property is another key consideration. It will determine your target market and in turn the amount of rent received.
Know the Law
One of the most important aspects of being a landlord and letting property is to be aware of Landlord Regulations. This is incredibly important since you need to know both your own rights and those of your tenants in case any problems arise. Regulations are changing constantly and major Health & Safety Laws, if not adhered to, can lead to hefty fines. Using a Managing Agent will ensure you are kept up to date and that your property adheres to all current Regulations and Guidelines. Being members of the Royal Institute of Chartered Surveyors and The Association of Residential Letting Agents we have access to dedicated legal advisers and can ensure that any problem encountered throughout a tenancy is dealt with quickly and efficiently.
What sets David Burr Lettings apart?
We offer a service, built around the needs of the individual Landlord. From Let Only through to Fully Managed we aim to secure not the first but the right tenant for your property. Each property is unique and requires a different approach and type of Tenant to ensure it is let swiftly. The combined knowledge of our team delivers a first class service ensuring the interests of our clients are being consistently and reliably managed.
Need help buying a rental property in Suffolk, Cambridgeshire or Essex?
David Burr offer a bespoke service to all our landlords. To discover more about becoming a landlord and rental properties in Suffolk, Cambridgeshire and Essex, why not contact your local office or pop in and have a chat.