As a landlord, choosing the right property to rent is crucial to how successful you are and how much return you receive from your buy-to-let. If you choose wisely, you can enjoy a consistent income with plenty of interest from the right tenants for you. However, if you choose a property that isn’t marketable or suitable for many people, you might find yourself struggling to pay the mortgage and face financial issues.
Research is key in the buy-to-let market and you should always take notice of your gut feeling. You’re not looking for the perfect property for you, but a property that is going to be attractive and practical for your prospective tenants. As a landlord buying a niche property is naturally going to be harder to market than a property that is affordable, functional and neutral.
We know it can be a tough decision, and it shouldn’t be something you choose lightly, but to make the process that little bit easier, we have put together our top tips for choosing the right property to rent as a new landlord.
Work out your budget
This may seem like an obvious point but setting your budget before you start looking for a property is essential. You need to work out what size house you can afford, so start by researching house prices in the areas you would like buy in. Get an idea for the type of property in your price range and look at the areas buy-to-let market to see what generally performs well.
Explore buy-to-let mortgages
You need to budget correctly for the mortgage of your buy-to-let property as this is how most landlords fund the purchase of the new property. You will also need to take into consideration the deposit required and find out how much the mortgage provider expects you to charge for rent.
Take all expenses into consideration
You need to ensure you can pay for any expenses the property requires to avoid financial risks. If your rental property needs maintaining or repairing, you need to be able to afford these expenses to ensure your property is in a good condition for your prospective tenants.
Think about your target market
When finding a property to rent, it is important to consider who are your prospective tenants going to be? If you’re looking to target families, a garden will likely increase the appeal of your property, but you want to find a low maintenance garden to keep your costs down. If you’re targeting professionals or students, a garden isn’t necessary and other things such as a comfortable living space will rank higher on their list of needs.
Do you want an old or new property?
It goes without saying that old properties hold more character and are generally more attractive to prospective tenants. However, they can come with more maintenance needs and upkeep compared to new builds. Purchasing a new build will more than likely enable you to begin renting it out instantly with very few issues. If you are looking at your first time mortgage, it is important to consider all of your options before committing or rushing.
Research, research, research
As the saying goes, don’t put all your eggs in one basket. Shop around and view multiple properties to find what’s going to be best in the long run. After all, an important investment in a property to rent shouldn’t be rushed, so take your time and inspect each property to make sure it’s the right one for you.
Choosing your property is just the first step, so try to view each property as yours in the long run and how it could work for you. How marketable is it? Is it in an area attractive to tenants? Do you need to carry out much work? There are many questions you need to pose before selecting a property.
Are you looking to purchase your first buy-to-let property? Here at Affitto Estate Agents, we make the buying process as smooth as possible for you. Once registered with us, our experts will contact you to find out your exact requirements, so when a suitable property comes on the market you will be informed before it is advertised online.
When you have found a property to rent that you love, we can arrange a viewing for you and accompany you to provide our expertise where needed. Our valuers will have valued the property so you will know how much to offer based on this and if accepted, we will instruct a property solicitor to move throughout the buying process with you.
If you would like to discuss your plans and requirements with us, we’d love to help you find the perfect investment so you can begin your buy-to-let journey. Simply get in touch by telephone on 0800 043 7368, or email firstname.lastname@example.org.