So, You Want to Be a Property Investor?
If this is your first foray into the world of buy to let property investing you may not be familiar with what being a landlord actually entails. That’s understandable and here at Property Loop we can help you with that in this article.
But there may also be other areas that you would like to get advice on before you spend some of your hard-earned cash, such as:
What Is the Best Type of Property to Invest in?
Should you go for a New Build or an older property? It depends on who you see as your target market. If it’s families you are after then they will want a garden for the kids to play in and, preferably, a good school nearby.
If it’s a young professional tenant or couple you’re after then a New Build is probably your best bet. That’s because it will be more modern and, more than likely, in a city – or at least a vibrant area where there are plenty of amenities.
As a student landlord you will need a larger property than a modern two-bedroom flat to rent out. You’ll be looking for at least three to four bedrooms (but bear in mind this will require a special HMO licence).
How to decorate a Rental Property
At Property Loop we always advise that when decorating, always go for a neutral colour scheme. The reason for this is so that the tenant can put their own stamp on the property. That way they will feel more at home, happier and are more likely to stay for longer.
Do the same with the furniture ie buy a wooden or white table, oatmeal or white sofa and light-coloured curtains. Try and buy the best-quality items you can for like, most things in life, quality counts in the sense that it should last longer. This is certainly something worth considering if you’re tempted to opt for a student let.
A fully-furnished rental means supplying all the kitchen white goods, beds, wardrobe, sofa, coffee table etc. If it’s student accommodation then as well as a bed, you will need to supply a desk and chair, perhaps also a lamp too. For families the best idea to offer the house unfurnished as this allows them to take the stuff they have accumulated over the years, out of storage.
Should You Hire a Property Manager?
Are you going to manage the property yourself or get an agency or individual in to do it? If you operate as a landlord then you’ll have to take some time out of your life to attend to your tenants needs. Getting someone else in means you can continue as you are but you’ll have to pay for the help. At the moment letting agents usually charge 11 to 14% of the property’s rental value. That’s not a lot considering the responsibility we at Property Loop believe.
Check Out Rental Yields in Your Locality
Rental yield is important. By rental yield we mean the amount of money you expect to receive from renting out the property compared to how much you paid for it and the additional expenses required. Ideally most mortgage lenders want your income to be 125% of your mortgage payment. That way you will have money left over to account for a void period and any maintenance issues that may arise.
And yet, what you charge for the rental shouldn’t be too much out of line with similar rental properties in the same area. The best way to achieve that 125% figure is to put down as much of a deposit as possible – that way your monthly mortgage is reduced.
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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