If you’re considering investing in property, especially buy to let, then there are some things you’ll need to consider beforehand. Whilst being a landlord can be a lucrative investment and you may see some positive returns, there can also be a lot of work included and it can be time consuming. The good news is that the rental market is on the rise, as more people are renting than ever before, so there is a surge in demand. Below are some of the things to consider when investing in property.
Where should you invest
Location can pay a key part in the success of your rental property and whether you can make a great return on it. Whether you’re an experienced landlord or looking to start your property portfolio, it’s always worth keeping an eye on the best cities to invest in for future opportunities. London is up there as one of the most popular and profitable, however other cities such as Manchester, Liverpool and Glasgow are also on the rise. With more people moving out of London to settle in other popular cities further afield due to more career opportunities for younger people. It might be worth trying to profit off this trend and invest in property in these areas.
The expenses of owning a rental property
There are of course costs involved with renting a property, some of which you could pass on to your tenants such as energy bills and council tax. However, there are some costs which you’ll have to budget for yourself such as landlords insurance (click here to view your options), tax on your annual earnings and also any variable costs such as property repairs and maintenance. It’s worth adding up all of your annual fixed costs and also variable costs so you can plan ahead and make sure you’re earning enough to cover them comfortably when it comes around to paying for them.
Renting privately or through a letting agency
If you already own a large portfolio of properties and have been doing it a while, then you might already have a good idea about how you’re going to rent it out. If you’re new to the property market however then you might be thinking about your options and whether you’re going to be renting out your property through a letting agent or if you’re going to take this on yourself. There are pros and cons to both and it will depend on your personal situation as to which works best for you.
If you have time on your hands and you’re comfortable taking on the management and maintaining of your property, then it might be something you’d like to look after yourself.
However, if you have other commitments or can’t access your property easily, then having an estate agent on hand might be something worth considering. They can take control of dealing with the tenants and can offer assistance on any issues that arise with the property.