Image by : whelanandpartners
Getting in the real estate business requires you to be committed in more ways than one. Not only should you be committed to spend much of your time to the business, you must also be prepared to commit financially. Here are some of the best Buy To Let tips that you should keep in mind:
Get in the renters’ shoes, pick the most rentable property.
Don’t be deceived by the physical beauty of the property. It doesn’t matter how pretty the home looks, if it is too small of a place or if it lacks the extra space, it will still be hard to market. The best homes to purchase if you want to rent it out are two bedroom houses. This kind of home can attract a variety of renters including the millennials, small families, and even single tenants looking to find a co-renter. If you’re just starting out in the renting business, it’s not advisable to venture into multi family homes as these homes are more difficult to market. Stick to single family homes with great features so you can be considered by more potential renters.
Try to stay away from older homes.
Older homes are more prone to damages and repairs. Don’t be lured by low prices and great home features, older homes tend to deteriorate quicker than new homes. It’s okay to go for an older home if you are going to live in it since you probably don’t mind fixing things every time something gets broken, but if your property is to be occupied by a tenant, you need to be conscious about the quality of home they are living in. You wouldn’t want to be constantly complained to every time a damage arises.
Simply put, older homes tend to cost you so much money as time passed by. You may not spend a lot upon purchase since older homes are usually cheaper than new ones, but the accumulated expenses spent on repairs can actually amount to so much. Go for a relatively new home so you can get the most out of the property. You can enjoy years of little to no damage which would mean less expenditure for you and more satisfaction for your tenants.
Check if there is a good tenants’ market in your chosen community.
The first step in deciding on a location is finding out if there is a high renters’ market in your prospect locations. Check online or get assistance from an estate agent to find out the figures that you need. High vacancy rates technically mean that there isn’t a lot of renters in that area. Low vacancy rates would mean that the area is crowded with renters, and that is what you are looking for. You may also need to check the average rental prices so you’d have an idea as to how much you can charge as a landlord. The ideal location would be one with a low vacancy rate because in such case, you are in a position to charge higher rents.
Don’t hesitate to venture in other areas.
Do not limit your real estate investment in your immediate area. Never hesitate to get out of that comfort zone of yours. In choosing the best real estate investment, you need to base your decision on marketability and profitability. You may feel more comfortable buying in the area where you have lived for the last years, but if you want success in your renting business, you have to pick the most ideal location. If that means having to drive hours away, then be it. it’s hard to say no to profit, so if you find a potential real estate investment in another city, then don’t think twice.
If your current city or town has a booming real estate market, then everything’s great! You can start with buying there and maybe when business is good, you can venture in other places too. The real estate business can bring you good profit if you can handle it well. Imagine what multiple real estate investments can do to your financial assets if you are able to ‘branch out’ to multiple other cities. In the long run you’re just gonna have to receive profit and balance losses if there are any. But do keep in mind that the business needs lots of time and it can bring stress from time to time, but usually, it’s all worth it.
Some investors would advise for you to use a letting agency.
Getting the assistance of a letting agency is also advisable, especially if you don’t have a lot of time to spare for the business and if you think that you don’t have the time to study and learn about the complicated things the real estate letting comes with. Just one thing though, it’s important for you to choose the best letting agency, and research their services before you pick one. There are letting agencies that would charge you for many things that other agencies already include in their monthly premiums.
All in all, buy to let is one of the most profitable real estate business moves anybody can ever make. Just as long as you pick the right property and you trust the right agency, if ever you decide to get one, it’s almost sure that you are gonna end up garnering money from this business move. There’ll be times when the market gives you challenges, but just like in every industry, you just need to deal with it as it happens. If you are working with a good agency or estate agent, there really isn’t much to worry about. This is the best reason why investing in real estate is a great move, because it doesn’t matter what the market is doing, you will still be a property owner. When the market gets back on its feet, and so will your business. In the end, you can end up selling your property, or even transfer to it as your new home. This may need some paper works but it can be worked out by you and your agent. – iLetProperties