Economic uncertainty and gloomy predictions about the housing sector may be making you cautious,
but with the right approach, you can become a buy to let landlord, and you can make a success of it.
It is about looking at it as an investment project, and understanding what this involves.
To become a buy to let landlord, you must be strategic and systematic. Ignore the scare stories, but be realistic.
Prepare Your Finances
Becoming a buy to let landlord means first understanding what your financial commitment will be. A substantial deposit is essential to begin with.
However, this is not just about the loan you will need for your buy to let mortgage, but also your ongoing costs as a landlord.
These include utility bills, council tax and other charges.
Also consider how you will cover any void periods, where you do not have tenants in your property; and how to deal with rent arrears, should they occur.
One solution is to take a guaranteed rent option with a lettings and management agent.
A key part of the systematic approach we mentioned is choosing the right buy to let mortgage, and being clear about how you will manage your let financially as a going concern.
Choose Your Property
This is where having a sound strategy is so critical.
It is about understanding the area you choose, and understanding your potential customer base, and what they are looking for their rented accommodation.
Remember: whatever type of property you choose, this is about you as an investor, looking for the best future rental yield.
In fact, your immediate local area may not be the best place to start.
Also, within areas, property values can fluctuate considerably.
You must do your research, and dig out reliable data.
It is worth thinking about taking on professional guidance and support from a lettings agent with proven local knowledge, who can then assist you in sourcing the right property.
A lettings agent will give you an accurate idea of the rents you can expect and what areas are best for the type of property you are interested in.
Understand the Legislation
As a buy to let landlord, you will have certain legal responsibilities, and must comply with Government regulations.
These cover issues such as tenant deposits, multiple occupation legislation and your obligations regarding the upkeep of your property and the safety of your tenants.
The Government has useful guidelines to do with becoming a landlord.
Once you have established yourself as a buy to let landlord, you might think about applying to be on the National Register of Accredited Landlords. This can be a valuable step if you are then seeking to expand your property portfolio.
Manage Your Buy to Let Property
The success of your investment as a buy to let landlord will very much depend on how you manage it.
If you choose to manage your property you will need to be up to date with your responsibilities, and will need to find your tenants, check their references, collect rent and maintain your property.
This is why choosing a lettings agent can make such a significant difference to how you manage your property, and to the ultimate success of your enterprise.
As a specialist in lettings and management, easy2let Manchester offers a range of dedicated services, designed to make it easier for new buy to let landlords to get started, and to make the most of their investments.
This level of professional property management support gives landlords peace of mind and helps them maximise the yields from their properties.
Get in Touch
For more information about easy2let’s property management and lettings services, please call 0161 615 4795, email firstname.lastname@example.org or complete our online contact form, and we will be in touch as soon as possible.