5 buy to let tips for success
Worried you’ve missed the buy-to-let boom and it’s too late to profit from property now? Whilst it is certainly more difficult to make money this way than it was ten to twenty years ago, these simple tips will stand you in good stead.
1. Research, research, research
It might sound obvious, but too many people think it’s easy to make money with buy-to-let properties and fail to research the market properly before taking the plunge. Research possible areas thoroughly and speak to other landlords and agents to hear their tips. Ask for advice on the best CRM for property management, too.
2. Choose an up-and-coming area
Check for news of new train stations or new developments that will make areas become more desirable to renters. Who is your target market? If you want to rent out a 3-bed house to a young family, you will have a greater chance of success if there are good schools and amenities in the area. If your market is young professionals, you will need excellent transport links, shops and bars nearby.
3. Make sure your sums add up
You need to make sure you can afford a buy-to-let mortgage and that you will be able to make enough rent to cover your repayments. Buy-to-let mortgages are stricter than owner-occupier mortgages, so factor this in to your calculations. Use reliable software in order to manage all your costs and ensure your calculations are correct.
4. Shop around for the best mortgage
Don’t simply use your usual bank or mortgage provider for your buy-to-let mortgage. Shop around and speak to different providers. Read reviews to make sure a good deal is actually as good as it sounds. The Telegraph reveals that many banks are looking to lure buy-to-let borrowers with tempting 10-year fixed rate mortgages.
5. Identify your ideal tenant
Whether you plan to rent to young professionals, working families or mature couples, you need to know your audience inside-out in order to be able to maximise your return on investment. The location, property size, decor and rental cost will all need to be tailored to your target market so get to know your audience from the very start.