Buy to let properties can be a very attractive investment but you need to understand exactly what is involved before you go ahead.
Having a good property portfolio allows for a good monthly income as well as the growth your property value could have over time. Here at Horizon, we have put together some useful ideas to help you start your investment portfolio.
What Is a But To Let Property?
Buy to let is where a property is bought to be rented out to tenants, rather than lived in by the purchaser. Investors can make money by generating an income with the rent, as long as it is more than the outgoings of the property. There are few assets out there that have shown to be more profitable in the long term than property. Unfortunately though, like all investments, there are risks attached with buy to let properties too.
You are investing both time and money into a buy to let property so make sure that you do not go in thinking there are no downfalls. Being a landlord means you have a certain amount of legal obligations and failing to comply could mean you commit a criminal offence.
Key things you must take into account when searching for property include:
- Think about what kind of tenant you want to rent your property to in the future.
- Buy in an area where prospective tenants will want to live will give you a plentiful supply of suitable tenants.
- How you will deal with any problems that occur, this may include instructing a managing agent such as Horizon Lets.
- Calculate a budget, including legal costs if needed. Check you can pay any mortgage and outgoings at time when you don’t have a time or there is a problem with rent collection.
- Ensure that you include any agents fees in your budget if you are instructing one.
- Investigate landlord rental insurance so you know you are protected if there are any issues.
Horizon Lets would love to help you find your buy to let property and get you your ideal tenant so please contact our lettings agents to get started!
- Buy Your First Buy To Let Property
- Five Things to Consider Before Investing in a Buy-to-Let Property
- Different Types Of Tenancy Explained
- Landlord’s Guide to Letting Property
- Sheffield is a BUY-TO-LET HOTSPOT