Buying a property to rent can be a great way to generate extra income. As long as you find the perfect property and the right tenants, everything else should be a walk in the park – right?
That said, it’s important not to rush into buying the first available property that’s in your budget. Here are a few things to consider when looking at buying properties to rent.
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Know the local market
Before you enter the renting game, it is a good idea to do some research on what your current local market looks like. Google will be your new best friend when it comes to checking online listings of available properties to rent in your area. This will help you get a clearer idea of your potential profit.
Of course, each property is different but seeing what else is out there will help you manage your expectations and give your property a fighting chance for success.
Find a letting agent
While it is possible to rent your property yourself, this can sometimes be a pretty time-consuming task. This is especially true if you aren’t well versed in financial jargon. If this is the case, you may want to consider seeking the help of a letting agent. Not only will they draw up your tenancy agreement, but they can also manage advertisements, viewings and act as an intermediary between you and the tenant if you wish.
Though this will save you lots of time and energy, bear in mind that this may mean less rental income for you. So, it may be worth checking the agent’s fees before giving them the green light to manage the letting your property. A proficient letting agent can also recommend a reputable end of tenancy cleaning company, facilitating a smoother transition between tenants.
Get landlord insurance
Renting your property is a pretty big commitment to make. Even if you find the perfect property and upstanding tenants, there is no guarantee that things will go right all the time. For your peace of mind, consider investing in landlord insurance.
Taking out cover is a huge part of renting any property. A good insurance policy is always vital when it comes to protecting your investment. To find the best possible deal for you, it’s a good idea to compare landlord insurance. After all, every rental situation is different and you want to make sure that you’re getting the right cover to protect your property.
Prepare yourself
Sure, buying a good property is key to attracting upstanding tenants. But it’s not just about the property, it’s also about how well you adapt to the role of a landlord.
Becoming a landlord is almost like becoming a parent- it’s a big responsibility. While most tenancies tend to be pretty smooth sailing, things can sometimes go wrong. In such cases, tenants will often turn to you as the landlord to sort out any problems with the property or rent. This could mean that you need to make yourself available at the drop of a hat to resolve any immediate issues.
So, make sure that you’re cut out for the role before entering the renting business.
