Sponsored by HomeLet:
One of the most common ways to invest capital in an achievable and manageable way is to invest in property. The availability and relative low risk of investing in property is attractive to budding business moguls, and more and more women are entering the realm of landlordship. It has been argued that females make better landlords than their male counterparts, partly owing to their ability to empathize with tenants.
But is being a landlord as easy as it seems? Fluctuating markets, changing lending rules, and unwelcomed tenants all contribute to the risk of being a landlord — all of which can be quite daunting. Luckily there is a plethora of information available for both experienced and prospective landlords. Landlord insurance provider, HomeLet, recently released a second ebook, giving advice to landlords which covers a number of important topics.
Sarah Davidson, senior property reporter from This is Money, has written extensively about about how changing taxes and lending rules could impact on the buy-to-let market in the UK. Keeping an eye on any changes in lending rules is hugely important when taking the plunge into property.
Once you’ve come to grips with all relevant rules and regulations, and assuming that it’s necessary, getting a mortgage is the next step. There are many lending options so shopping around for the best deal is highly advisable. You also need to factor in safety checks that must be passed before you can legally start to take tenants.
Having a clear idea of who your tenant is going to be will help you to decorate accordingly. Students won’t expect anything other than basic amenities and furnishings, whereas a family will expect a higher standard of decor but a blank canvas to add their own furniture.
Conducting thorough tenant checks is of utmost importance. Not knowing about a tenant’s rental and credit history could result in huge problems further down the line. According to experts, having a vacant property is much better than having a bad tenant. Many new landlords will rush to fill a property for fear of losing money, however, you risk losing more by not screening tenants properly.
Finally, planning for times when a property may be left vacant is essential. Although becoming a landlord is a relatively safe bet, it doesn’t come without some degree of risk. If for whatever reason your property is empty for a while, having financial backup could be the difference between losing the property or not.
All in all, buying property to let is a very rewarding venture. Not only can your return on investment be handsome, you can have fun with the project along the way. By using this actionable advice from experts, you can be sure of your investment and build a portfolio that will last you a lifetime.