You may have heard that investing in property is one of the best routes to a high income. And you are not wrong. There are many benefits to being a landlord for example, you will be earning money in your sleep! However, being a landlord isn't a breeze in the park, it is a real job and needs dedication. I have put together some questions to ask yourself and some things to consider before you decide to invest into property and become a landlord!
Ultimately, is buy to let for you?
You must first realise that being a landlord is not a straight forward hobby but instead it is a business. If you have a jam packed life, do you have enough time to invest into this.
Did you know that prices of houses go down as well as up. If you are looking to buy a house and later sell it for a higher price, be aware that it may not rise in price for no reason!
Do you have difficulty in socialising with those with contradicting views to yourself? If you do, this may be a problem as you will need to co-operate with people with different views/religions/ideas.
You will need to think about which group of tenants you are aiming for. Do you want to accommodate students, families, couples, professionals or people on benefits. Each group will need to be targeted differently and also will have different needs and requirements. Once you decide that, you will need to find a property which is matches them.
Be prepared... all the time. Unless you are going through an agent, you will have to be there for your tenants 24/7. If their boiler exploded and was leaking through the floors, you will have to get someone on the job ASAP. Be prepared for your tenants asking for help in the middle of night.
That also takes me to another decision you will have to make. Are you going to self manage or go through a good letting agent to help you. It may be better to self manage if you have plenty of time but if you want your business to run smoothly, asking a letting agent maybe the better decision.
You will need to research your market! It is a good idea that for first time buyers, you grab a property in your local area so you have a head start in the neighborhood knowledge. But you will still need to do more research!
Qualities that tenants will look for are good transport links, good schools, friendly neighbours, local jobs, shopping facilities and low crime rate.
If so far you still think you can be a landlord, you need to device a plan! Are you financially able? Open up a spreadsheet and try to financially plan your way of a landlord. Do you have the upfront costs? Do you have enough money for any unexpected costs? Can you support yourself if your tenant pays late?
Next is to learn this ins and outs of the law in property. You don't want to be getting into any legal problems so learn all the facts and figures and your do's and don'ts before getting yourself into any problems!
Gather yourself a list of contacts. You will need to know other people in the trade, potential tenants, electricians, plumbers, decorators! Anyone that will help is good.
The next big thing is to get yourself that perfect property! Once you have done all your research, know everything there is to being a landlord... now it's time to invest. Find the best property, discover its yield and year purchase and buy it!
You now have your property... now perfect it! Paint the walls, possible furnish it, clean it, get a fire alarm and make it look nice for the tenants to get them attached quicker. Once it is presentable, complete an inventory.
When your tenants are moving in, time to provide them with everything they need. Keys, emergency contacts, white goods manual and sign the contract with them!
Now all is left is to be the angel landlord. Have fun earning! If you have any other queries or you are looking for a letting agent to help you along the way don't hesitate to contact us at Glocal Residential either through email: info@glocal-residential.co.uk or call us on 01216555188. We are an experienced letting agent located in Birmingham City Centre!
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