The document provides six essential tips for potential landlords entering the buy-to-let market, emphasizing the importance of thorough market research and careful property selection. It highlights the significance of understanding your target tenants and suggests exploring wider areas for investment while considering renovation opportunities to increase property value. Additionally, it discusses the pros and cons of renting properties independently versus through letting agents.

1. 6 Tips For Potential
Landlords

2. Are you going to
become a
landlord? Here are
6 great tips…

3. Research the market
Buying-to-let can be a huge gamble
therefore it is important that you do
your research before you invest your
money.

4. First of all, it is vital that you are
making the investment that you
want.
Who knows, in years to come
your property may fall in value
which means you won’t ever
make a profit.

5. Investing in the buy-to-let market
involves committing thousands of
pounds into a property and most
likely taking out a mortgage;
therefore get online or speak to
others who have invested in the
property market.

6. Don’t jump straight into the
first mortgage you see
Why do you think banks make so much
profit per annum? One of the reasons is
because people take out mortgages
without doing their research – and can’t
pay them back.

7. Considering different banks and building
society’s is key to taking out a viable
mortgage. It’s worth speaking to a good,
trustworthy independent broker – or even
better, speaking to somebody you know
who has been through this process.
Surfing the internet will also give you tons
of option.

8. Carefully choose your area
One of the most important decisions you
need to make is the location of your
property.
The best piece of advice to give is to not
base your area on it being ‘cheap’ or
‘expensive’ – base it on a place people want
to live.

9. You need to consider things like;
What are the schools like? Does it
have nearby attractions? Has it got
good travel links?
This also refers back to research –
where does your target audience
WANT to live.

10. Choosing your area also links
too choosing your target
audience – you wouldn’t
invest in a property in the
countryside if you were
targeting University students.

11. Consider your targeted tenants
Many of those who failed in the buy-to-let
business is simply because they didn’t
research their audience. It’s simple, for a
successful letting – it is vital that you find
the right tenants.

12. Put yourself in your target audiences’
shoes – What are they looking for?
Where about is best for them to live?
For instance, a student from
Birmingham University wants student
accommodation in Birmingham – not
Solihull.

13. When you consider your target
tenants, you should also consider the
interior of your property. If you’re
targeting students, than you want
something clean and comfortable but
not luxurious. However, a young
upper-class couple is likely too prefer
a slick, spacious and modern home.

14. Finally, bare in mind that for your
tenants to stick around, it’s likely
that they’ll want to put a stamp on
their home. Letting them move
furniture around, decorating or
adding photo’s are small
allowances which will make all the
difference.

15. How hands-on do you want to
be?
If you’ve decided that your definitely going to
buy-to let, then your next step is whether your
going to rent it yourself or do so through a
Letting Agents. Both ways have their
advantages and disadvantages so again, it’s
important that you do your research first.

16. Renting yourself can be advantageous
because you avoid paying fee’s to a letting
agency and make more money off the rent
itself. However, renting yourself can add
unnecessary stress – first of all you must
be prepared to give up most of your time,
with likely unsociable hours, to participate
in viewings. Also, you would have to
arrange your own advertising and repairs.

17. Agents on the other hand; although
they charge you a management fee,
they will deal with your problems
such as repairs as they will have
close networks with plumbers,
decorators etc.

18. Consider looking further afield
and/or renovating
Many investors seem to look in areas
near to where they live however, your
town may not be the best area to
generate a good profit margin.

19. The benefits of casting a wider net are
endless for a number of reasons. For
instance, you as an investor may live
closer to rural areas rather than the city –
whereas many tenants are more likely to
be located in the city. Even though you
may be far from the property, hiring an
agency will benefit you as they can keep
their eye on it.

20. In addition, renovation can be very profitable
for investors. By doing a property up, your
increasing the value of your investment and
also advertising a more attractive, current
property which will draw in a much wider
audience in comparison to a dull, dated
interior.
However, remember that if you do, ensure
that the price is low enough not to further
yourself in debts that can’t be made back off
tenant rent.

21. We hope you found this blog helpful.
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Thank you.