Which type of landlord are you?
Landlords tend to fall broadly into one of three main types according to their specific objectives which is why here at Henry Adams Lettings, we place a high priority on tailoring their professional advice to correspond with your individual investment plan.
“Every landlord takes a different view of what they want from an investment property and should approach their choice of buy-to-let property to reflect those goals,” explains Nick Van Klaveren, director of Henry Adams Lettings in Storrington.
“Investors may have a preference for either short or long term returns, they may prefer up & coming or established areas, and they’ll often have specific goals for net yield balanced against capital appreciation.
“Everyone is different so our advice is tailored on an individual basis to help each of our landlord clients achieve their required outcomes.”
Long term balance
Nick continues, “We believe around three quarters of landlords who have entered the buy-to-let market primarily for investment usually take a longer term view. They’ll factor in the additional investment stamp duty as part of careful budgeting. It’s also essential to consider void periods, mortgage arrangement fees and a host of other potential costs including longer term maintenance. Within a larger, balanced portfolio the investor can look out for areas and locations which are rising in popularity for better returns on their investment, but the risk is generally higher.”
Family heritage
An alternative reason to become a landlord is when parents choose to buy an investment property to boost their income and to benefit their children in years to come, in which case they may prefer a more established location.
Reluctant landlords
“We have also seen many new landlords entering the market somewhat reluctantly having been unable to sell at a timescale to suit them. Even so it can work out extremely well for most in the long run, providing both flexibility and an income while still paying off some of the mortgage,” says Nick.
“The most important thing is to get professional, impartial advice for your individual circumstances and objectives, and so that you appreciate the responsibilities and legalities - and rewards - of becoming a landlord.”
If you’d like to discuss any aspect of property investment, letting, or are thinking of becoming a landlord, contact any branch of Henry Adams Lettings in Storrington, Horsham, Chichester, Haslemere and across the region, or check out our dedicated lettings information here.
