Low borrowing rates and increased rental demand have encouraged many people to invest in buy-to-let properties. Rental yields can boost income and are often seen as a pension provision.
At JTM Homes, our specialist lettings team helps people enter the buy-to let market. We also manage many landlords’ portfolios.
Here are our top five tips to gain every success from your buy-to-let properties:
1. Do your homework
It’s important to know the full picture – the pros and cons of the buy-to-let market. Current forecasts show that Britain is becoming a rental nation however recent legislative changes have made property rental less lucrative. Are you fully informed?
2. Choose your area carefully
The best buy-to-let opportunities may not be in your local area. You need to weigh up cost, demand and return. Think about the schools, transport links and facilities nearby. What reputation does the area have? An appealing location should attract a good supply of tenants, which leads to…
3. Target your tenants
Who would you like as your tenants? Are you aiming for a student let, long term family tenants, young professionals? This dictates the standard of finish to your property – and your tenants’ requirements. Does your property need to be basic, allow for tenants to make their mark or modern and finished to a high standard?
“Seeing your property through your tenants’ eyes will help you ensure that your house feels like their home,” explains Jason Dyer of JTM Homes. “This gives potential for a long term tenancy which is ideal for landlords.”
4. Do the numbers add up?
There are several essential elements to consider:
- Purchase price and costs
- Buy-to-let mortgage costs
- Ongoing maintenance costs
- Rental income
- Tax implications
- Legislative requirements
5. Getting Involved
Some property investors like to be involved as landlords… managing the property, collecting the rent and finding tenants.
Others prefer to have the convenience of working with a letting agent. Yes, there’s a fee to pay, however there is a lot of convenience and a network of trusted tradespeople involved too.
“Three levels of service are available to our landlords,” says Jason. “This means that you are able to choose how involved you want to be.”
To find out more about the options available, take a look at our Landlord Guide, or speak to the friendly lettings team at JTM Homes.