Stags' advice when considering a buy-to-let investment.
Carefully research the local market and tenant demand in the area you intend to buy. Establish the tenant demand and the most sought-after size, style and type of property required. Consider local amenities and main lines of communication and employment that will all help to ensure your property is let quickly; choose an area where people want to live. Do not let personal taste cloud your judgement.
Get your sums right; will the rent cover borrowings and costs after allowing for void periods? As a landlord you will continue to be responsible for maintenance costs and servicing of fixtures and fittings to include boilers and buildings insurance. It is best not to purchase a property that will require lots of ongoing maintenance. What will the cost of refurbishment prior to letting be? The less you have to do the better. Think of buy-to-let as a medium to long-term investment. Do not be over ambitious and opt for a realistic yield and capital growth.
If you intend to borrow, ensure you choose a mortgage that best suits your current and future needs. Take advice from an experienced independent mortgage advisor. You will need money to cover upfront costs including the deposit, legal fees and stamp duty.Check with HMRC
As a buy-to-let landlord you have obligations to your tenants and need to comply with certain regulations including; gas and electrical safety, repairing and maintenance obligations, fire safety, deposit protection, tenancy agreements and notices and Energy Performance Certificates.
You will need to decide how you would like your property to be managed during the tenancy. Stags is able to offer a number of tailored services to suit everyone. Many buy-to-let landlords require a fully-managed service as a third party will be dealing with all aspects of the letting and management of the property, including the collection of rent.Stags Landlord Services
Stags offer a rent guarantee insurance to protect your rental income and investment.Rent Guaranteed
Thinking of investing? We can offer comprehensive Buy-to-Let advice to make sure you buy the right property in the right area.
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