Buying properties for the purposes of renting them out is an idea that has existed for a long time. But it is only relatively recently that normal people have been able to try their hands at it. If you are considering buying a property to rent, here is what you need to know.
It’s Not the Same as Buying a Home
When you are looking at a property with a view to buying it as a rental, your criteria will be different than it would be if you were buying it to live in. For one thing, if you are looking to buy a property and live in it for the long term, you will need to choose somewhere that fits in strongly with your personal tastes. By contrast, when your main concern is that you are able to let the property to someone else, it doesn’t necessarily have to match your tastes.
When you are considering a property’s potential as a purely rental property, you will want to put your own feelings aside and instead consider the current nature of the market. Don’t be afraid to choose a property that you don’t like if you think you can let it successfully.
You Have Options
It’s important to understand that, while going through a letting agent may still be the preferred method for many people, there are other options available to homeowners who are looking to rent their properties.
One example of these other options is London Shared. London Shared rent properties from their owners, then subsequently rent out the rooms within the properties individually. Property owners benefit from the certainty of receiving their full rent each month, while London Shared manage the tenants. The tenants themselves benefit from the many features that London Shared include in their packages. They have properties to rent in a number of neighbourhoods, for example you can view London Shared’s guide to living in somewhere like Balham, and if you’re interested in living here go directly to their rooms to rent page.
Learn the Law
When you rent a property out, there are a number of legal requirements that you must fulfill. Knowing these upfront will help you in deciding which is the right property for you. It will also help you to avoid any mistakes further down the line.
For example, one such requirement is that the tenant must be given a copy of the energy performance certificate for the property.
Some people prefer to go through letting agents to ensure that things progress as smoothly as possible. However, there are some people who will similarly refuse to work with estate agents. There are definitely advantages to working with a letting agent, especially if you have no prior experience with letting properties.
If you do decide to go with a letting agent, make sure you do your research so that you know how to choose the right one. If you are planning on making a career of your buy-to-let habit, it will help to form a lasting relationship with a letting agent that you can trust.
More people than ever before are buying up properties with the express intention of renting them out. This cottage industry has exploded in recent years, and you can get in on the action too! Just make sure to thoroughly research before you commit.