If you’ve amassed some extra income and you’re keen to invest it in a buy-to-let property – becoming a first-time landlord in the process – then chances are, you’re feeling a heady blend of nerves and excitement.
Settle On A Strategy
One of the first decisions you will need to make as a budding new landlord is what kind of tenants you will be aiming to acquire. This is a vital decision as it will inform the type of property you look for, as well as your potential earnings and your responsibilities.
For instance, perhaps you would prefer to rent out a property to individual families – or maybe you would like to try and maximise your income and become the landlord of an HMO, buying a larger building and renting out each bedroom to individuals.
View, View, View
Once you have sorted out your landlord strategy, it’s time to start searching for the ideal buy-to-let property.
While you may be keen to purchase a rental as soon as possible, so you can make a listing and put it up for tenancy, the reality is that you should dedicate a lot of time to viewing different properties. The more homes you see, the more chance you have of finding the ideal option that will suit both you – and your prospective tenants.
Weigh Up The Value Of ‘Investment’ Vs Ready To Rent
Depending on how much capital you have set aside to pour into your buy-to-let, you might want to consider an older ‘investment’ property that can be fixed up and potentially earn you a significant income.
On the other hand, you may prefer a newbuild that’s already glossy and well-appointed, and ready to be let out almost right away.
The option you choose is, of course, up to you. If you do decide to purchase an investment property, be sure to find the right contractors and tradesmen to help you spruce it up and make it as appealing as possible to new tenants.
For instance, perhaps your property’s rooms need replastering and painting. Selecting the ideal local plasterers for the job shouldn’t be difficult, with the help of MyBuilder. Simply post a description of the job, and plasterers near you will be in touch with quotes.
Decide How Big A Role You Want To Play
This is a crucial consideration, as it will determine how much interaction and effort you put in to managing your new rental property.
You may be keen to take on an active role, in order to boost your earnings, or you may prefer to hire a letting agent to take care of the management of your property on your behalf – although, even with an agent, you will still to play a part in the renting of your building.
Keep On Top Of Your Admin
Keeping on top of your paperwork is an essential requirement, and is your legal responsibility as a landlord. This means ensuring you have all of the necessary up-to-date documentation for your new property – and this documentation must be securely stored away in case it should be needed.
This paperwork will be crucial in the case of a dispute with your tenants, or if you need to re-mortgage your buy-to-let.
These are just a few of the important steps you will need to take when it comes to finding your ideal property and ensuring its properly managed.
Admittedly, it may seem daunting to begin with – but as long as you obey the laws and manage your new property responsibly, you should find being a first-time landlord to be a fulfilling and profitable new role.