The recipe for a successful buy-to-let
The right way to invest in property for the most secure results means weighing up all the available options including the buoyancy of the buy-to-let market.
Jodie Gregory of our Chichester lettings office has this advice for buy-to-let success:
Location
Rather than choosing a property in an area you’re already familiar with, seek out locations with the best amenities for the type of property and tenant you are targeting, such as commuter flats near a station or family homes near good schools.
Property Type
All types of property let, so selection depends on the income you want to generate. Buy-to-let investors often fall into two categories; those looking for high yields for regular income and others who are more concerned with the likely capital appreciation over time. Prospective 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?
Decide whether you want 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, Jodie 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, so take the right steps for the best
chance of success.”
