Investing in a Buy to Let Property
Investing in a buy-to-let property can be hugely beneficial from a financial perspective and will allow you to build a property portfolio as an investment if that’s something you’re interested in. That said, it’s important to rent cautiously in order to reduce costs and risks. So here are four letting tips that are sure to serve you well going forward.
- Find Your Own Tenants
There are many different types of landlords. Some invest in cheap properties for renovation, some offer housing for students and others want long-term tenants who will take care of an upmarket property. Depending on how ‘fussy’ you are about your property being properly taken care of, it’s a good idea to source your own tenants. While an agency can do this for you, they’re likely to be less invested in the type of person they find to sign a tenancy agreement. By meeting the tenants first-hand, you can decide if they’re a good fit for your property type and expectations. This will help mitigate the risk of the ‘unknown.’
As a side note, you can always hand the running of the property over to an agent once you’re happy with the tenants you’ve chosen.
- Vet Applicants Before Viewing
Along the same thread, you might want to vet applicants before arranging a viewing – particularly if you don’t live close to your buy-to-let property. This will save money on wasted fuel if tenants are found to be unsuitable down the line. An easy way to vet tenants without being overly invasive to start with is to send over a simple form. This should include questions such as, “What do you do for a living?” and “What is your monthly income?” Armed with this information, you can pick cooperative tenants that meet your criteria.
- Find a Cheap Way to Get Your Property Online
Advertising a buy-to-let property shouldn’t cost the earth. In fact, there are sites out there that’ll get the views you need, without the charges. There are letting companies that will get your property on sites such as Rightmove, Zoopla and so on for a decent fee and the quicker you can find a tenant the less you’ll have to pay in advertising.
To help find a tenant quickly, make sure your property listing comes with clear photographs of a high quality that give an honest representation of your property. The last thing you want is to give false impressions and waste time showing around people who thought they were interested but actually aren’t. Make sure the description is detailed too and list all included furniture, white goods and so on as well as any valuable USPs such as local schools or bus routes.
- Don’t Make Rent Too Expensive
With landlord tax and other charges looming over you, it can be tempting to hike the rent. But don’t. Look at the going rate for properties in your area and set the monthly rent accordingly. If you price your property too high, it could take you longer to find a decent tenant and you’ll lose out on rent in the meantime. Be aware also that a high price tag could result in viewers expecting more than you’re offering. They may bombard you with a host of renovation requests or simply walk away at the end of the viewing with no interest in calling you again. Accountants for buy-to-let-landlords will offer you the help and advice you need regarding finances.
If you’re looking for services regarding property tax for landlords including landlord tax returns, contact IBISS & CO today. Receive expert advice from a team of chartered accountants and tax advisors working across Barking, Tooting and Walsall.