Our Top 5 Buy To Let Landlord Tips

Buying a buy to let property can be a great long term investment. However, there are things you need to consider before taking plunge.

Becoming a Landlord is a full time job, although a good rental agent will help you, you will still need to raise a deposit and fulfil your obligations to the tenant as well as getting on with the rest of your everyday life which may include a full time occupation

Here are a few ideas to help you along the way.

Location, Location, Location

When choosing a buy to let property location is important. Tenants can move with a month’s notice which could mean you are left with a property with no rent being generated. In an ideal world, a property that is close to where you are currently living is preferable, as you can keep an eye on things and be available should something need attending to. However, you could consider looking further afield, particularly if you are likely to gain more rental income. If you are unfamiliar with the area, do some research? Look at local amenities, schools and transport links.

Talk to local people, even better, the neighbours of a property you are interested in, their knowledge of the area could be helpful.

Target your Tenant

When viewing properties, put your Landlord hat on! Remember that it is not you that will be living in the property and select your purchase with this in mind. For example, if you are buying in a university town you will undoubtedly attract students.

Suburbia is likely to attract families with children, a city flat, young professionals. Have an idea of the type of people you want to entice, as this will also help you when choosing the type of property you wish to view.

Finances

Get your finances in order. You will probably require a deposit of between 15% and 30%. However, as a buy to let investor you are in a strong position as you are chain free. This could be helpful in your negotiation with the vendor. Having a mortgage already agreed and in place is also a good idea as again will be attractive to those looking for a quick sale. Allow some money for those unforeseen expenses….. There are bound to be some!

What happens if things go wrong?

You need to consider that there may be times when the property is empty and you will have no rent coming in. Will you be able to cover the mortgage is this happens? You can employ an agent to manage the property you will but you will still be liable for any maintenance or repair costs incurred. While buy to let is a relatively safe investment, remember you are unlikely to be able to retrieve your money quickly.

You’ve found your buy to let property

The main decision you will need to make is do you want to employ a rental agent to manage the property on your behalf, or do it yourself. By choosing the latter you are taking on finding a tenant (and ensuring they are suitable), collecting rent, maintaining the property and being available at all times should something go wrong.

Also, take a look around. Simply decorating or adding basic furniture will make the property more appealing to potential tenants. Make sure the exterior of the property is well maintained, lots of people make a decision about a property before they have even stepped out of the car!

By following a few simple rules, your buy to let purchase can go very smoothly, and generate you some income!

AskAlan: If you are a seller or a buyer, a landlord or a tenant and you want any personal confidential advice about any property related matters email me at alan@alanbatt.co.uk