20 Feb Things to Consider When Buying Property To Let
Things to Consider When Buying Property To Let
When you decide to become a landlord, it can be quite exciting as you will be aware of how much of a return on investment this kind of purchase can bring you. Of course, becoming a landlord and joining the buy-to-let industry is not without its struggles, as you’ll need to figure out quite a few things before you get started.
To help you with this, we thought we would put together some of the things that you should consider when buying a property to let. Keep reading to find out more.
Where to Invest
The first thing that you need to consider when you are buying property to let is the location. You’ll want to make sure that you are investing your money in a location that is desirable, otherwise, you might struggle to find tenants that are willing to pay enough money each month. Take a look online at some of the best places to invest in throughout the country and use this information to find the right place for you.
One or Many?
Some landlords like to buy one property at a time to rent out to new tenants but this is not always the case. If you have the money, it is also possible to invest in a block of flats that can all be rented out to new tenants. This will obviously be a larger investment, but it does mean you should earn a much higher rental yield, and there are also administrative advantages to having all your buy-to-let properties in one location.
Of course, if you do decide to do this, you will need to take out a block of flats insurance policy instead of regular landlord insurance. You can find quotes for a block of flats insurance online so that you can compare what’s included and the best prices available.
Furnished or Unfurnished
Another thing to consider when buying a property to let is whether you will furnish it or not. Some tenants prefer this to unfurnished apartments but this is not always the case. If you furnish a flat, you will be able to charge more on a monthly basis, but it will be a higher initial investment. It might be worth doing some research on local properties to see what gets the best results.
Will You Get It Managed?
Finally, you should consider whether you want your property to be managed by a letting agent or not. Some landlords enjoy being hands-on but this is a big commitment and you might not have time to handle every issue if you have many properties. It might be worth taking a look at some letting agencies in your local area who can handle this and save you some time.
Final Verdict
If you are thinking about investing in a new property that you are going to rent out, you should make sure to consider everything that we have discussed in this article. Think about whether you will get it managed or not and don’t forget to consider buying more than one property. Hopefully, you get a good return on your investment over time and when you eventually sell it.