Buy to let property remains a popular investment with many people across the UK.
But what do you need to know before becoming a buy to let landlord?
The thought of becoming a landlord can be overwhelming for some. Bringing many considerations and even more responsibilities. That said, it’s also a very exciting prospect – a monthly passive income, a diverse investment portfolio and more financial freedom.
From the investment process itself, to taxes and general maintenance, prospective investors have a lot of things to consider before taking the plunge to becoming a Buy-to-Let landlord.
So if that’s your first time, your MUST HAVES to check on are right here. We got you!
Cash cash baby…
As you’ll be aware, you’ll need some cold hard cash to obtain a buy-to-let mortgage. Consider your current assets and financial position- look at how much you can pull together to get a deposit. You will typically need a deposit of more than 20% to get a buy to let mortgage.
Look around, check around
Buying a property to let out is fundamentally different to buying somewhere that you would like to live; it’s a business venture, and should be approached as such. Think about what is important to your future tenants and what they are looking for in a rental home. Location is always the key and being in a popular area for renting can make a considerable difference to your income.
“The one” and only…
And now its time to find this perfect property. If you do your research, you can find out which areas are best for buy-to-let rental property yields. It can be far from where you live, so take it into consideration when deciding. Also, what is important what type of a Landlord you want to be. Broadly speaking, there are two ways to be a landlord.
A full-time professional landlord:
You rent out your properties to your tenants directly. You manage all repairs, answer any tenant queries, and set up a safe-deposit scheme.
A part-time landlord:
You own the property and pay the mortgage, but a letting agent does all the day to day legwork of managing repairs, tenants, and rent. It’s a lot easier and less time-consuming to be a part-time landlord.
Once decided on the area, find out where your closest Estate Agency is and have a talk.
Are you local to us? Give us a call or come to see us for more information how to become a Buy To Let Landlord.
If you ever thought you are not ready for it, we believe you are ready now!
We are pulling for you!