Your choice of property as a buy-to-let landlord is the most important factor in whether your investment is successful. By picking the right property, you will always have a constant stream of tenants knocking at your door, as well as a decent rental income that will help you balance the books.
To help you make the right choice, we’ve come up with some tips below:
Determine a budget
Setting up a budget will help you determine how much you’re able to spend when purchasing a home. Begin doing some research into house prices and the standard rents of the areas you wish to buy-to-let. This will help you narrow down the properties that fall into your price range.
It’s important to stick to your budget and not stretch it further; otherwise you may struggle to pay for any unexpected costs and find it hard to deal with long periods without a tenant in the property.
It’s also important to include the mortgage in your finance calculations. If you’re a landlord who would like to take out a buy-to-let mortgage with us or would just like to know more information, check out our Landlord Investor Centre to help you make the most of your investment.
Choice of tenants
The location you choose will heavily depend on what kind of tenants you want to attract.
Young professionals are more likely to be interested in good transport links and leisure facilities, whilst families will want to live in close proximity to schools. If you’re looking to attract students, ensure you choose somewhere that’s close to a university and/or college.
Another factor that determines your choice of tenant is the type of property you choose. For example, families are less likely to choose to let an inner city apartment. You need to also consider the layout of the property, especially if you’re looking to let out shared accommodation.
Some outdoor space or even a garden is something many tenants, especially families will appreciate, further adding to the appeal of your property. Something important that’s worth considering is that a garden’s upkeep can be costly, so make sure the garden requires minimal maintenance.
Age of property
Choosing a newer property will mean fewer maintenance problems and may be an easier sell to prospective tenants overall. However older homes do have more character, as well as a story behind them which is also a key selling point. You may be able to buy an older home that needs some work for a little less, so long as you’re ready to do complete the needed renovations.
What kind of buy-to-let home will you be looking to purchase? Let us know on Twitter @haart_uk.