If investing in rental properties, everyone who had the chance would be doing it. The truth is that there is actually far much to it than finding a few cheap homes at auction and snapping them up. If you want to be a successful landlord in the UK there are many things to take into consideration. One of the most important of these is the new laws surrounding buy to let mortgages.
Investing in Rental Properties : Professional Advice
Whether you are a first time landlord, or are adding to your already existing portfolio, it is always advisable to use professional help. This is even more important if you are looking to invest in properties in an area you are unfamiliar with. Asides looking at rental prices online, it can be hard to judge whether your investment will be a wise one or not. When you choose the services of a professional property management team, the whole process can be taken care of for you. This will start with finding you the best properties and will carry on with property management and maintenance plans.
If you are investing in properties in your own time, you may think that you can manage properties yourself. This will only be the case if you live nearby and only have a couple of homes. If you are living somewhere else, then it will be impossible to have peace of mind that your properties are not being abused. In this case, a property manager is not just a wise move but a vital asset to your portfolio.
The amount you pay for your property will be reflected in the amount of rent you will receive in the long run. Although there is the chance to buy bank-repossessed homes cheaply, generally speaking, the cheaper the property, the less ROI you will achieve.
If you are looking for cheap properties, then you will need to consider a renovation budget. Letting substandard properties in the UK is not worthwhile. Asides your reputations the type of tenants you will get in a dilapidated property are not those that will look after your crumbling home for you.
Investing in Rental Properties : Renovation Work
If you are looking for a short term return on your money, invest in properties that are ready to let. If you have money to invest and are looking for long term return on investment, then taking on renovation projects can be worthwhile. But, here you will need to ensure that the properties you buy are structurally sound and that they are worth the money you but them for. Damp, dry and wet rot, and bad electrical wiring and outdated plumbing are just a handful of problems you can find when you buy cheap property.
If a property is very cheap, and is not a repossessed home, then there will be a reason for the cheap price. It could be in a bad area, or it could be simply that the home is not fit for habitation unless you carry out extensive repairs. For all repairs to properties, use the service of vetted builders, ensuring that the standard of workmanship is of the same level that you would expect in your own home.