The buy to let industry in the UK is booming right now. Millions of people are investing in property as a way of enjoying a regular income and making capital gains, but although there are lots of reasons why property investment is a smart move, it isn’t always a smooth process.
Becoming a landlord can be tough. If you are lucky everything will run like clockwork and you won’t experience any problems, but as most landlords run into problems at some point it pays to be prepared. So if you like the idea of being a landlord and you can afford to invest in a second property, here are a few tips to help you be more successful.
Find the Right Property
Not all properties make good rentals so research before you buy. Find out what properties are more attractive to tenants in the area you are hoping to buy in. Look at typical rents and see if the figures stack up. Real estate agents can offer advice in this regard. And remember, the type of property you buy should match your preferred tenant demographic.
Find the Right Tenants
Tenants come in all shapes and sizes: students, young professionals, executives, families, and vulnerable people on a low income. Whatever type of tenant you are hoping to attract, make sure you vet them thoroughly before offering them a tenancy. The last thing any landlord needs is a tenant that wrecks the place and refuses to pay any rent.
It’s a Business!
Treat your buy to let as a business and act like a professional at all times. This includes doing the accounts, keeping up with property maintenance, tracking rental payments and treating tenants with respect. Landlord software can help if you have more than one property, but don’t forget important things like inventories. It can be a time consuming business, but if you outsource some of the tasks to companies in the UK such as hertsinventories.co.uk, your life will be easier.
Manage Void Periods
Reducing void periods is critical if you want to be a successful landlord. The longer a property stays empty with no tenant and no rental income, the more costly it is. There will be times when you can’t avoid having an empty property, but it is a good idea to try and minimise these wherever possible. Finding the right tenants helps, because good tenants are hassle free and you won’t need to evict them. It is also a good idea to treat tenants well, as this means they are less likely to move out without giving you much notice.
Know Your Facts
There is a lot of red-tape and legislation attached to being a landlord, so make sure you know your statutory duties. That way you are less likely to be fined for not fulfilling your duty as a landlord.
Being a landlord is not for everyone, but if you can make your business work, it is possible to realise some healthy financial gains in the long term.