Property has helped many people fund a fantastic lifestyle. The shortage of properties has led to house prices shooting up dramatically over the years. The popularity of property investment is perhaps linked to the fact that many people see getting into property as a way of making a great deal of money for very little, but the best and most successful landlords do seem to be the ones that are prepared to put the work in. Make sure you get the right investment advice before you purchase your first buy-to-let property.
See also our new article: HULT Private Capital Insights on Property Investing in the UK which shares property investing insights.
Get a real return on investment
The bigger your property grows, the more help you’ll need to manage your properties. This can mean setting up an office for staff to deal with the array of maintenance requests and other challenges you’ll be faced with. It’s best to put as much money back into your business as you can if you want it to grow. Many people start small by investing a low-cost property before slowing building up their portfolio. The more you’re willing to invest in any property you buy, the better. Repairs and renovations can be worth their weight in gold, and any amount you fork out to make changes can be eclipsed by the extra money you’ll be able to charge for your property once it has been revamped. Renovations can represent a remarkable return on investment. Many people have made a loss after developing their first home, so it is worth to get as much advice on developing your portfolio as you can to avoid wasting your resources. Some landlords don’t let their properties at all and instead buy homes, develop them and sell them off to make a vast profit.
Landlord-tenant relationships
Some experts warn landlords not to become too friendly with their tenants. Becoming friendly with them could make it harder to make difficult decisions like putting the rent up or taking action against them if they fail to adhere to the rules of your contract. It’s best to do everything you can to protect your reputation and avoid popping round to your property too often if you do have tenants in. Visiting the property too often can anger tenants and impact your reputation negatively. Many landlords choose to never meet their tenants and instead ask an agency to deal with them instead. This means you won’t be called in the small hours when something goes wrong and can relax safe in the knowledge that things are being looked after on your behalf.
Get the right advice
It’s wise to shop around for the best financial advice and most reputable agency if you are considering outsourcing the management of your properties to someone else. Of course, you may find yourself paying out far more than you’d like to a lettings agent and may therefore decide to get your own offices. Many would-be landlords hoping to enter the market don’t realise they don’t need to live near the property in question. In the north, house prices can be low, but rental yields high, especially in university towns. If you do wish to buy a house located far away from you, it may well be best to outsource management to another company. They will be able to interview and vet tenants for you, freeing up your valuable time. Many landlords are advised not to think about where they would like to live, but where the biggest demand for properties is. Some say that one and two-bedroomed properties are the most sought-after. To find out what to charge, you can use property websites. These will help you get a firm idea about what the going rate is for properties like yours in the same area.
Where do you stand legally?
It’s wise to find high-quality legal support before you start renting out properties. There are many things that can go wrong when renting out a property, and many landlords have had their fingers burnt due to non-payment of rent. A high-quality solicitor will be able to draw up a contract tailored towards your exact needs and requirements, whilst keeping you up-to-date with the very latest legislation to help you comply with the law and enable you to resolve disputes at the end of a tenancy including dilapidation claims and who is responsible for covering repair costs. Remember, some of the most successful landlords didn’t turn around a great profit on their first buy-to-let homes. There are many solicitors who can help you resolve commercial property disputes.
If you require any legal advice about disputes and current or existing issues with your property, talk to a property solicitor today. Law firms such as Whitehead Monckton in Kent can provide expertise in commercial property dilapidations over the phone or face to face.
Alternatively if you would like to seek advice in property investment management, Raymond James also in Kent, has years of knowledge and experience in offering tailored investment and financial advice to a range of clients including private, corporate and family.
