Everyone has dreamt of being able to do it. For many, it is part of their retirement plan; buying a property or two, renting them out for a sum that will cover both the mortgage and running costs, all while you sit back and watch the price of your property inflate. What better way is there to enjoy a fruitful retirement?
What’s more, thanks to low-interest rates, a booming property market, and an ever-growing pool of tenants, now is a great time to invest. However, it is no walk in the park. Running a buy-to-let business has plenty of challenges.
Read on for some top tips on being a successful landlord:
1. Research The Market
If you are new to this area of investment then make sure you do all the research you can. We suggest going to the experts for advice, someone who has experience in dealing with a wide range of investment opportunities. It may be that a high-interest rate savings account would better suit your needs, or the return from an income-based investment fund; something that isn’t attached to the same risk as property and doesn’t tie up a lot of capital.
2. Hire The Right Agent
If you decide property investment is the route you want to go down, make sure you get yourself a good agent. A good agent will be able to talk you through the steps, as well as the rules and regulations you must follow to set up your tenancy. They will also ensure all potential tenants have good a credit history and suitable references and consolidate all the necessary paperwork, albeit at a cost. Just make sure they are registered with the Association of Residential Letting Agents.
3. Negotiate Fees
There are a lot of fees you will have to consider, all of which will add to the running costs of a property. But as a rule of thumb, agents will typically expect to be paid ten percent for finding you a tenant and twenty percent for managing your property, which will include everyday maintenance. However, you don’t be scared to negotiate these percentages initially and find out what hidden costs there may be.
4. Insurance
Having landlord insurance is the only way to ensure you get a good night’s sleep when you have a tenant. This will cover any damage, as well as any accident or break-in.
5. 24/7
Most of the time being a landlord will consist of radio silence. But be prepared for that dreaded call whereby you found a pipe has burst and water is cascading into the property below, or a tenant has lost their keys or thinks they have carbon monoxide poisoning. These things happen, and you need to be prepared to drop everything to sort it out. Being a landlord is not just a matter of receiving payment at the end of the month, it is hard work too.
Leave a Reply