Here are the top five questions asked by property investors and Landlords, and here are the answers:
5. How can property management help me?
Landlords can really benefit from the services of a property management agent. The agent will have a lot of experience and information, as well as helping set up buy-to-let schemes, getting reliable tenants as well as organizing viewings. Getting a property management agent costs a small fee, but it is worth it and will make life a lot easier.
4. How do I devise an effective exit strategy?
Many considerations have to be taken into account when buying a property, and an exit plan is one of them. Planning long-term in this way will ensure you don’t get stuck in a rut – for example, not being able to sell (even if the property has been refurbished). Try and look for the worst property in the best area, as location is crucial to property value – upgrading it near-guarantee it selling. Try not to hold on to a property for too long either, sell on once you feel you’ll make a good profit.
3. How can I get the “right” tenants?
You need to make sure you have good tenants. Non-payment, lack of care for your property will have an impact on your returns. Make sure you create a watertight contract so that you can claim back on any damage and try and obtain credit checks and references (and check them). A history of arrears is sure to be a bad sign.
2. What are the best types of property to buy?
Properties which hold the greatest returns are those which have the greatest demand. The greater the demand, the higher the rent, and the stronger your negotiating platform will be. Do your research on the area and look at potential new developments such as airports, stations, shopping centres, town renovations and so on. Good schools will be of benefit if you are renting larger properties to families with children. In general, you’ll get the best return from two or three bedroom houses close to good transport links. Check with your letting agent though.
1. How can I maximize my return?
If you follow many of the rules above, you’re going to increase your return as well as decreasing the possibility of it being reduced via loss of rent and so on. Don’t skimp on landlord insurance either as this will cover you against many eventualities. Be innovative though, try and appeal to a high paying market such as professionals – this can be done by purchasing a property with good transport links and furnishing it to a high standard. The initial cost will be high, but you will reap the rewards later on.