Finding the Right Buy-to-Let
Before even typing Zoopla or Rightmove in the search engine of your computer, decide who you want to rent your buy to let property to.
For instance, is it a family, students, a young single person, immigrant worker or professional. That’s because each category will want different things. Families, for instance, will probably want a house with parks and a good school nearby. A young professional will want to be near the city centre and the entertainment that provides.
Always Stick to Your Budget
Possibly you can’t afford to go over your budget anyway, but if you’re tempted to – don’t. Remember there are lots of other fees to fork out, such as conveyancing fees, insurance, letting agent fees, cover for void periods etc.
Having said that, do negotiate on the price of your buy to let. The good thing is that because you intend to let it out you won’t be ‘emotionally invested’ in the property, meaning you can actually strike quite a hard bargain over what you’re prepared to pay.
Choose Your Location Carefully
You don’t have to buy a property close to where you live, but it’s sensible since you can always keep an eye on it. You’ll understandably be nervous about letting it out – especially if this is your first time as a buy to let landlord.
But, if your target tenant market is students, then you’re going to have to look for somewhere within walking distance of a university or college.
You can expand outwards of your own town or region and get a letting agent to look after your property. You’ll have to pay for this though.
What to Look for When Buying a Property to Rent
If you opt for a modern apartment to rent out then beware there will be management company fees for keeping communal areas clean etc.
Older properties can have high ceilings and big rooms so feel more spacious. Families, in particular are drawn to these. The downside is maintenance can be pretty hefty in terms of damp proofing courses, rewriting etc.
Newbuilds can be more reliable, but may still have snagging problems. Trouble is they tend to be in out-of-town estates – so not ideal for young professionals or single people.
Most mortgage lenders will want you to set the rent at 125% of your mortgage repayment. That way they know you’ll be able to afford it if there’s a couple of months void period or a lot of costly maintenance to factor in.
A fast internet connection is incredibly important to many age groups these days – it’s not just students who want it. There has been a huge amount of working from home during the pandemic and it’s really been brought home to people just how important having a decent broadband speed is.
Energy efficiency is another area many prospective tenants look for in a rental property. important. They will be able to tell how efficient your property is by checking the Energy Performance Certificate (EPC). The more efficient it is, the less tenants will have to pay out in utility costs – and the more likely they are to stay longer.
Type of Boiler
A boiler which is more than 10 years old should really be replaced. It should also be serviced annually to get the most out of it and make sure it doesn’t break down at an inconvenient time, such as the middle of winter. Having hot water and heating is crucial for all types of tenants, regardless of age, professional, family status. A broken boiler should always be an emergency repair.
Looking for an online property agent you can trust? Then get in touch with the team here at propertyloop.co.uk.
Built by experienced property investors and landlords, the website connects renters and owners directly. Why not sign-up to see it in action?
It’s a free platform that only charges a small fee once you get your rent money in. Your property is featured on all major search and comparison portals as well as advertised by PropertyLoop everywhere else on the Internet.
You don’t have to worry about finding good renters since that’s the job for the platform. Receive offers straight to your mailbox and select the renters that are right for your property.
Need access to the busy London property market? No problem at all! PropertyLoop is the London market specialist with years of experience and unique knowledge. Whatever your needs are, you can always speak to our friendly support staff. Renting property is made as simple as one, two, three…
As a landlord you will gain passive monthly rental income from your buy to let and capital appreciation as the years flit past. And it’s exactly this capital appreciation ...
February 12, 2021
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