What to look for in a buy-to-let
When considering where to invest, it makes sense to weigh up all the available options including the buy-to-let market.
James Riley of Henry Adams Lettings in the heart of Bognor, offers a tips for selecting a good buy-to-let property:
Location
First time investors often prefer to choose a property in an area they are already familiar with. We recommend instead seeking out the location with the best amenities for the type of property and tenant they are targeting, such as commuter flats near a station or family homes near good schools.
Property Type
All types of property let, so choice depends on the income you want to generate. Buy-to-let investors often fall into two categories; those looking to generate a high yield return for regular income and others who are more concerned with the likely capital appreciation over time. Landlords are always welcome to bring in a shortlist of properties, for sale with us or not, and we can offer advice based on individual requirements.
Tenant
Generally speaking, the better the landlord looks after the property the better the tenant looks after it too. A successful let is about finding the right balance between the quality of tenant, level of rent and a high occupancy rate.
Finance
Once you’ve researched your buy-to-let mortgage options, factor in all outgoings, tax implications and potential void periods. Some costs, such as the agent’s fee, are tax deductible and the income will need to be declared on your tax return. While the tenant is liable to pay council tax and utility costs, you are responsible for buildings insurance, service charges and maintaining the property.
What next?
You can decide whether to manage the property yourself or hand it across to your agent. It’s an additional expense but saves you the trouble of resolving maintenance issues and having to make access arrangements if a problem arises.
Above all, James advises would-be landlords to invest in property with their head not their heart - “This is a business investment which can provide a regular income but it doesn’t come with a guarantee.”
James Riley can be contacted at the Bognor & Aldwick office of Henry Adams Lettings on 01243 538464. Alternatively visit www.henryadams.co.uk, email lettings@henryadams.co.uk or visit your local Henry Adams office in Bognor, Chichester, Middleton on Sea, Emsworth and branches across the region.
