Top tips for buy to let properties

25 May 2011

If you are considering buying a home in order to let it then there are a lot more issues to consider than just the purchase and finding a tenant. Take a look at the list of things to think about to make sure that your investment pays the right returns:

1. Make profit your primary concern

In many cases, people searching for buy to let opportunities choose properties that are nearby for added convenience. The problem then arises that the demand for property in that area may not be as high as in some places further afield. Research should be done into the areas with the greatest demand for rental property, as this will help return the best profit to the landlord.

2. Work out the sums

Before purchasing, it’s vital to work out what you can realistically afford, starting with a free house valuation. You may be able to afford the property itself but you also need to work out how much things like insurance, council tax and maintenance will cost. Working out these costs early will also enable you to set a practical monthly rental cost to the tenant, whilst ensuring it remains a profitable venture.

3. Do your mortgage homework

More and more products are starting to return to the mortgage market, and there is a lot more choice then we’ve seen over the past couple of years. Speak to an independent financial advisor about your purchase, and the best possible deal you can get for your buy to let investment.

4. The importance of insurance

With a buy to let investment you’ll potentially need special insurance in addition to your existing cover. With a considerable amount of money invested in the property, you want to make sure that you have the right level of cover to protect against any eventuality.

5. Make it eye-catching

Think about what is going to make your property stand out from the crowd, so you can attract the most interest and negotiate the best rental payments from tenants. Consider what type of audience you are targeting, whether it is first time buyers, young professionals or families looking for rental property. If you take into account their likely needs and tastes, you’ll be able to tailor your property to capture these tenants.

 

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