HOW TO BUY TO LET

Before you commit to Buy To Let in the UK make sure you do your research properly and very thoroughly. Buying a property can become a very expensive mistake if you don’t get it right, so make sure you totally understand what Buy To Let is all about and how you are going to make money out of it.

Do the Ground Work

You will need to talk to many of your local letting agents to find out what the typical rents are for the different types of property in your area and how they vary by location. This will give you an understanding of where the best rents can be obtained and which properties will produce them.

When buying to let it is imperative that you clearly identify and thoroughly research the market in which you want to let your property.

Take advice from the letting agents who know the area as they will know what is in demand, the rents attainable and any problem locations or property types. Their take on what you are trying to do will be invaluable so listen very carefully to what they say.

You will also need to visit estate agents and check out the price of properties for sale in the area to determine which ones will give the best return on investment when considering both the rental income and capital appreciation over the next few years.

Choose a few of the properties currently for sale and do the maths on each one to see how much real net income you will have left after taking into account all your annual expenses including any mortgage payments.

Don’t forget to factor in the one-off costs of buying the property over the time you expect to keep the property. Also take into account that there will be void periods when the property will not be let and there will be no rental income.

This exercise should prove whether or not you can make enough money out of Buy To Let to make it a viable proposition.

Find the Right Property

Assuming you have proved to yourself that Buy To Let is for you then you will need to start looking for your first property.

Visit as many estate agents as you can to get a comprehensive list of what is available in the price range and type of property you have decided to go for. You even be able to get one or more friendly letting agents to find a property for you.

Through careful planning and buying sensibly you should get yourself a property which requires little maintenance and which should be attractive to any prospective tenant.

When you think you have found the right property check it out with some letting agents to make sure you have made the right choice. They will be able to very quickly to tell you the letting potential of the property and what level of redecoration or modernisation it requires.

The letting agents will have much more experience than you in this game and will also be able to tell you more accurately what level of rent you could get.

Fix It Up

Off course this is an ideal scenario and is not always possible. You may find that you need to redecorate and make other improvements before you reach the situation where your property requires minimum maintenance and is attractive.

If there is a need for redecoration then always do this to a high quality and if possible go a step further and add new fixtures and fittings, even new kitchens and bathrooms, to attract good tenants who may want to stay there for a considerable length of time. To them it will feel like moving into a brand new home.

If your property is not comfortable to live in you may find that you have a large turnover of tenants with costly empty periods in between when there will be no rent coming in.