Top tips for investing in rental property

Always wanted to become a landlord?

Buying a property to let is one of the most lucrative investments you can make. And because your income is passive, you can earn money whilst dedicating most of your time and energy to your regular job.

Experts agree that investing in property is a smart move but – as with any other investment – there are several things you need to be mindful of. That’s why we thought we’d offer a few simple tips to help you get off to the best possible start.

5 things to do before you invest in rental property

1. Assess your financial situation carefully

Whilst renting out a property can be rewarding, you also need to cover losses in case you experience any void periods or unexpected repairs along the way.

Therefore, as a general rule of thumb, landlords need to have at least 6 months of income set aside to budget for all possible expenses. And let’s face it, having an emergency pot of cash for when something doesn’t go according to plan will save you a lot of stress.

• Make an appointment with your bank

Don’t get us wrong, investing in property is a fantastic way to build a steady stream of passive income – and shopping for properties is exciting. However, it’s worth speaking with your local banker first as buying to let often requires stricter mortgage qualifications than buying an owner-occupied home.

Though every bank and mortgage lender is different, arranging an appointment to sit down and talk through your options with an expert will enable you to make an informed decision – helping you to maximize your investment.

• Do your research

If you’re new to buy-to-let, it pays to do your research – finding out more about the market and the risks, as well as the benefits.

You need to match the type of property you can afford and want to buy with locations that people would choose to live. To help narrow your options down, here are just a couple of things to consider:

• What are the average rental prices in the area?
• Is the area accessible via public transport?
• Are the neighbours friendly and approachable?
• What is the crime rate like?
• Are there ample job opportunities?
• Where is the nearest good school?
• Does the area have desirable amenities?

Although these questions should help you choose the right investment property, partnering with a property management company or letting agent in Warrington is also sensible.

• Know your legal obligations

Whether you’re planning to rent it out yourself or you’ll hand over the responsibility to a letting agent, you must be familiar with the landlord-tenant laws currently in place.

For example, you need to know your legal obligations (i.e. security deposits, eviction rules, etc.) and what your tenants are entitled to whilst staying at your property. The more clued up you are, the better. And remember to protect your investment against damage, lost rental income, and liability with landlord insurance.

• Use a letting agent for property management

If it’s your first time buying a rental property, or you don’t have an awful lot of time on your hands, letting agents like Easylet Residential in Warrington can ease the burden.

Admittedly, you will be charged a management fee, but you can relax knowing that any problems will be dealt with efficiently as they have managed more than 200 properties over the years!

To find out more about the services Easylet Residential provide for landlords and what they can do to help you, give them a call on 01925 633 011.