Buy to Let Success - tips and advice

An increasing number of people have decided to invest in property in order to rent it out - 'buy to let'.

By buying a discounted property 'off-plan' and then renting it out, it is possible to make fantastic gains.

'Buy to Let' property investment issues to consider

By buying a discounted property 'off-plan' and then renting it out, it is possible to make fantastic gains.

• The old adage, "Location, location, location" is the most important factor when considering investing in a property which will be rented out. Consider the local area and amenities (e.g. parking, bars, transport links, facilities, schools, proximity to university/hospital etc)
• Get in touch with a number of local estate agents and find out which types of property is in demand. Ask about the market rate for rents. Take advice from local letting agents as to whether the property should be furnished or unfurnished.
• Consider using a leting agent to let out and mange your property. They will deal with the contracts, tenancy agreement, deposit, advertising, references etc.
• Consider how you will pay the mortgage if interest rates rise in future. Do you have enough to cover it? Also remember that the property will not always be rented out - there may be time during teh year that it is vacant.
• Set money aside for repairs and maintenance .
• Keep the property well maintained and in good repair. You will receive more demand than a property which is run down.
• Don't get too emotionally attached to the property. It is usually better to decorate the property in a neutral fashion (i.e. breaking open those big tubs of magnolia) rather than go for a distinctive look in your own taste.

Buy to Let mortgages and finance

It is much easier to get a buy to let mortgage than it used to be with lenders wanting to tap into the recent growth in buy to let landlords.

The amount you can borrow on a buy to let mortgage will often be based on the rental income rather than the salary of the buyer. The rates are usually be about 0.5% higher than a normal residential mortgage.

Resources

LandlordZONE.co.uk - Rental Property Knowledge - Resource Site for Landlords, Tenants and Letting Agents