3 top tips for new buy-to-let landlords

 In Property

Starting out as a buy-to-let landlord can be a confusing time. That’s why we’ve prepared this handy list of tips for new buy-to-let landlords:

Tips for new buy-to-let landlords

1. Decide on a tenant type

Don’t make the mistake of picking an investment property based on your domestic needs and preferences.

Pick a tenant type to target, and choose the property accordingly. For example:

  • Students = small bedrooms with inexpensive fixtures and fittings
  • Family = master bedroom and children’s room, safe stairwell and plain decor

Also, give scope for tenants to make their mark, as it could persuade them to stick around longer.

2. Get to know the local area

Get to know the city or region you’re purchasing property in intimately. Find out:

  • Where are the best schools and transport links?
  • Where is new housing and infrastructure set for development?
  • Is it close enough to walk/commute to the main commercial centre?
  • Where are different tenant types currently based?

Use this as the basis for deciding which specific areas and properties have the right combination of ingredients for tenants, and stand the best chance of generating increased resale value.

3. Crunch the numbers

Crunching the numbers is crucial for buy-to-let success.

To find out whether your investment will be worthwhile, you’ll need to factor in:

  • Property prices and local rental rates (typically, 125% of mortgage repayments)
  • Maintenance costs and temporary vacancies
  • Mortgage options and finder fees

A specialist landlord accountant is also an effective asset that can help your money go further.

Call on 3 Wise Bears to get more expert advice and guidance for buy-to-let landlords.

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