With the property market booming, a housing crisis and a generation of young professionals ready to rent out homes, it seems like there’s never been a better time to get income from Buy to Let. However, things are never as easy as they seem, so here’s some of The Flatman Partnership’s top tips for starting out as a Landlord.
1. Research your market, and your tenants
You need an area where there is a strong demand for rented properties, and tenants. When you choose your area, look at average rent prices – are they higher than normal? This is a good indicator of a strong market.
Talk to a local Estate Agent to find out more about the property market, demand and prices. Our areas, Reading and Langley, are fast becoming some of the hottest property areas. With initiatives such as Crossrail and its proximity to London, they are extremely popular with professionals and the demand for rented properties is high. It’s a great time to make the leap into being a Landlord!
2. Know your responsibilities
Make sure you know exactly what being a Landlord entails. You need to find suitable tenants, collect rent, maintain the property and carry out repairs, as well as ensure that you fulfill all your safety obligations for the property.
Using a Letting Agency will reduce your workload. At The Flatman Partnership, our Lettings service offers a Rent Protection Policy, whereby up to 12 months’ worth of rent is covered in the event that your tenant is unable to meet their rental payments. We also make sure that all our tenants go through reference checks, and can accompany prospective tenants on viewings to save you time.
3. Don’t just rely on rising house prices, make rent a significant return
Although Reading has recorded an 11% increase in the price of a flat since 2004, and larger properties have increased between 40% and 63%, don’t just rely on the end result. Make sure that your rental income covers the mortgage payments and other costs that might be incurred, and makes a profit for you. That way, should interest rates rise and times change, you won’t have to face the unhappy decision of contribute to the mortgage yourself, or, in the worst case scenario, have to to sell the property.
Want to know more about Buy to Let? Contact us today to find out about our services, experience and the property market in Reading, Langley and Wokingham.