If you’re lucky enough to have a little cash to spare, you might have considered buying to let. To many, it seems like an easy means of making money. Despite the high initial outlay, most prospective landlords assume that the rest of the process is cheap and simple: you find tenants, charge them a high enough rent to cover your mortgage with a little on top, and allow a letting agency to handle everything else in your stead.
The reality is very different. Buying-to-let is an intensive, time-consuming, and expensive process, and the hard work doesn’t stop until you have suitable tenants that are happily settled in your property. Even then, leases come to an end, and it may be that you find yourself having to look for new people to rent your house every year or two.
This means that it’s important to get it right from the very beginning. You must go in knowing exactly what you need to do, how you’ll achieve it, and how much it will cost. To set you on the right path, here are three top tips to guide your hand…
#1: Stick to Your Budget
One of the most important requirements for those looking to turn their letting venture into a success is to settle on a budget and stick to it. The whole point of buying to let is that it will earn you money, yet it will never do that if you splash out more than you should at the outset. It’s really important to work out how much you can afford to spend on a property and renovations before you even begin to look at what’s on the market, and you’ll also need a ballpark figure of how much you’ll be able to set aside for your mortgage, and the property’s upkeep, month-on-month.
#2: Have an Audience in Mind
Another top tip is to have an audience in mind. It is little use buying a property because it looks cheap. Not every house will appeal to renters, so it’s important to find one that does. Even within this group, there are various demographics, and some will suit your purposes more than others. This means that, when you’re looking at potential purchases, you need to bear in mind whether or not they’ll appeal to the market that you want to rent to.
#3: Choose Your Mortgage Carefully
Our third top tip is this: choose your mortgage carefully. It will constitute a huge monthly outgoing, so it’s really important to find a price and agreement that work for you. Specialist enterprises such as Saffron Building Society are a good starting point, as these offer carefully tailored buy-to-let mortgage packages. Such offerings tend to provide far better terms for people in your position than standard alternatives, so it’s well worth taking a look at them whilst you’re researching the best mortgage deal for you.
Find your perfect buy-to-let property today with these three top tips.