With bank interest rates remaining low, it’s no wonder that people wanting a decent return on their savings are exploring new and alternative options. Investing in the property market isn’t exactly maverick, but it is a tried and tested way of speculating to accumulate. Here are 5 top tips to help you become a profitable landlord.
- Research is Key
It goes without saying that if you are new to renting out property and understand very little about it, you need to get yourself in the know. First off, find out about all the legislation and regulation, this will serve as a good foundation from which to kick start the rest of your research.
If you are looking for a buy-to-let, then think outside of the box when it comes to choosing a location. Investigate aspects like near by industrial estates; looking at the kind of businesses an area is attracting may just give you an edge. Companies in the IT sector for example attract highly skilled professionals who can earn a great deal of money and therefore push up rental prices in the area.
- Added Value
Buying a property that needs some degree of development may also be a way to maximise your potential to make money from it. If you invest some money in renovation or modernisation, you may well get a better rental price and you will add value long term.
- Get the Best Price
Buying a second house can have its advantages, for instance, it will probably mean that you aren’t in a chain and if this is the case this puts you in a strong negotiating position. Driving a hard bargain is something you should be aiming to do from the outset and throughout the entire process.
- Hedge your Bets
Making sure you don’t overstretch yourself in terms of things like borrowing and the logistical practicalities of managing a rental property are factors that need to be assessed objectively. Don’t be afraid of seeking help, using an agency to manage your property can be worth the relatively small fee you will incur.
Play it safe and take out insurance, homelet.co.uk have 20 years experience of providing landlords with insurance cover that can be a real lifeline if the unexpected occurs and thus keep you on a level playing field.
- Target your Tenants
Having a very clear idea of whom you want to rent your property out to has distinct advantages and can save you money. For example, you wouldn’t want to spend as much on decorating a house that you intended renting to students as you would if you were intending to rent to a young professional couple.
This is by no means a definitive list of tips, but should serve as a springboard for your planning. So if you have any more helpful advice or tips for new or existing landlords, we love to hear them.