Being a landlord is not as easy as it seems. If you’re going to buy a property with a buy-to-let mortgage, then there are a number of things that you should consider before and while you’re becoming a landlord.
Take a look at our tops tips for being a successful landlord.
Decide Your Target Market
The market that you target with your property will inform many of your choices when it comes to location, size of the property and whether you furnish it. For instance, students will look for property in the centre of the city or near to the university, and won’t mind sacrificing communal rooms for extra bedrooms. A family, on the other hand will want somewhere in the suburbs, near a school, and will want communal space as well as bedrooms.
Don’t Be Restricted to Your Area
The property you choose needs to be a financial and tactical decision, not a property or an area that you like. Do your research and find areas nearby with a good rental yield that matches your target market. You need to concentrate on getting a good rate of return on your money.
Use Your Lack of Chain
You have an advantage over other buyers, because you don’t have a chain. Use that to your advantage when you’re putting an offer in on a property.
Don’t Over Furnish
Don’t be tempted to over-furnish the property. If the addition doesn’t add to the rent, (which it more than likely won’t), then don’t buy it.
Use a Letting Agent
Marketing and managing your property is half the effort, and you can make it much easier if you use a letting agent like House Network. There are a number of different packages available from various agents, so you have to think carefully about what kind of landlord you want to be and whether the chosen letting agent reflects this. Consider the fees that the agent will charge the tenant, as well as what you will be charged.
Look after your Tenants
Tenants who feel like they have a good relationship with their landlord are more likely to stay. For instance, letting tenants decorate the property (to within reason, i.e. paint the walls), will make the tenant feel more at home, and will therefore stay longer.
Similarly, being easy to get hold of, and quick to action makes a good landlord worth staying for too.