Keywest Estate Agents / Mar 18

Buy to Let Property Investment Tips

Successfully managing your Buy to Let property investment can be very satisfying. Not only will you get a monthly rental income, but the rental property itself should rise in value over time.

The home you are renting out is an investment, but ensuring the property is well-kept and maintained properly is essential.

Of course, you are probably busy with a daily job or even raising a family, and while buying a rental home as a business, it might not always be your top priority in life.

That’s why we have put together our Top 10 investment tips. These tips are based on our years of experience helping landlords run effective & successful businesses.

If you would like help and advice from a Lettings & Estate Agent in Leicester, you can call or email us any time. Email us at lettings@keywest-estateagents.co.uk or call 01162544555.

10 BTL Investment Tips for Success

● Choose your rental property carefully
● Decide how much involvement and time you want to invest
● Will you manage the property and maintenance tasks?
● Understanding possible net returns, rental income and Landlord costs
● Know that house prices can fluctuate
● Always get insured
● Be efficient and keep records of everything
● Choose the right letting agent
● Don’t fall in love with the property
● Plan for the future

Choose Your Rental Property Carefully

Its likely you want to invest your money into a rental home and start getting a return as fast as possible. But first, you must do your research and also consider the kind of rental property you want as well as what kind of tenants you need.

You might be thinking about students, but what if there isn’t a market for students in the area?

Top Tip – Speak to the specialists. We know the Leicester market best and can advise you accordingly.

Decide How Much Involvement and Time You Want to Invest

Determine what kind of landlord you would like to be. Will you be hands-on and do a lot of the maintenance & general up-keep work on your own, or do you want to hire tradesmen to do the work for you?

Top Tip – If you’re counting on tradespeople, ask around for recommendations and create a list of reliable contacts you can use when you need them the most. You can also check a companies reviews and star rating on Google.

Will You Manage the Rental Property and Maintenance Tasks?

There are many things you need to do including getting gas and electric certificates, collecting rent, dealing with maintenance as well as various other issues, even managing the procedure of eviction should anything go wrong with rental agreement.

So, are you able to do much of this management yourself, or do you need a knowledgeable letting’s agent to take away the strain?

Top Tip – We can help you find a good quality tenant, put together the contracts along with all the other administration involved with getting a tenancy set up for your property. Let us take the strain!

Understand the Possible NET Returns, Rental Income & Landlord Costs

You might have a capital in the bank to invest in a new rental property. You may also want to be a landlord and are thinking about the potential rental income. But, have you really done the maths and worked out the exact rental returns and profits?

Sit down with a pen and paper and do some research into all the various costs and expenses of being a landlord, for example:

● Landlords Insurance
● Servicing and gas and electric safety certificates
● EPC certificate
● Costs of repairs and maintenance
● Capital Gains Tax
● Void Periods
● Tenant Acquisition
● Utility Bills
● Mortgage Payments
● Agent Fees

This isn’t an exhaustive list, but is a good place to start!

Top Tips – Make sure you can afford it. This may seem ridiculous, but if the returns aren’t as fantastic as you assume, and the added expenses rack up, you can be in for a shock.

Know That Property Prices Can Fluctuate!

Owning a rental home is a sound financial investment most of the time. We would absolutely recommend being a buy-to-let landlord, especially in Leicester, however you need to understand that property markets can drop and in better times, increase in price.

Top Tip – Be in it for the long run. Be patient as prices can increase & decrease, a good landlord will know this and stick with it.

Get Landlord Insurance Cover for Your Investment Property

We strongly advise that you take out Landlords Insurance, Buildings Insurance and in some cases Contents Insurance.

It’s far better to be safe than sorry and should anything unfortunate take place, you will know that you are covered.

There are many policies available for you to choose from and not all will be appropriate. Let’s say you buy the property out right, or you want to let your existing home, then mortgage repayments insurance would be one type you do not need.

Top Tip – Speak to a skilled insurance broker. They will go through the level of cover you need and also why.

It’s your Duty to be Reliable and Also Keep Records of Everything

A buy-to-let investment is best when it has a paying tenant. When it is empty, it can cost you money. Landlords that can move swiftly when they need to find new tenants are the ones that have successful businesses.

Top Tip – Keep your documents organized & in order. Keep a list of preferred contractors including plumbers & electricians so that any type of job can be done quickly.

Pick the Right Lettings Agent to Manage your Rental Home

An excellent letting’s agent will advise you on which area to look at when finding your next buy-to-let investment and will know the amount of rental income you will receive for a property.

They’ll have the ability to recommend tradespeople, and deal with contracts. It’s worth doing your research and getting the right team in place for you.

Top Tip – Look for referrals from other landlords & seek recommendations. It is worth taking the time to find the right agent for you.

Do Not Fall in Love with your Investment

This is an interesting one. There’s a large difference between liking a house and loving it. If you love it, you may well not see it as a business and it is a business that has to make money.

Top Tip – You won’t be living in the house, yet you can place your stamp on it somehow, perhaps the garden design for instance.

Prepare for the Future

While you have a property to rent, ask yourself what your future as a landlord looks like:

What’s your long-term plan for the property?
Do you know whether you intend to sell it in the future?
Do you intend to keep it and eventually live in it?

Top Tip – Set your goals right at the beginning. By doing this, you will know what to do and when to make the right decision

We have years of experience in helping buy-to-let landlords succeed in the Leicestershire market. Please contact us today for professional advice or visit our site and book a free rental valuation with one of our local specialists. Email us at lettings@keywest-estateagents.co.uk or call us on 01162544555.

 

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