Buying to let for the first time? Want an easy Solution?
Buy to let investors come to us in many forms. Some are professional landlords and understand the complexities and pitfalls, but there are lots of landlords considering investing for their future and are slightly wary of the process.
Kate and I recently went to the landlord and investment show in Maidstone. There were lots of businesses on show, but mainly aimed at new or nervous landlords who need that extra support or good agent support in the process. It was a little bit like a shark’s den, with sharp suited financial advisors offering “get rich quick schemes” and investment opportunities in other areas of the UK.
It’s fair to say that there are opportunities offered by these companies, but of course there are more risks and less control involved. However, as we discussed, there is a huge opportunity in the local market to get yourself a solid and reliable investment without too much work.
We have lots of landlords who have decided to sell their investment properties. There are a variety of reasons for this, many of which are genuine. These can be as simple as wanting to cash in on the house price rises, retirement or perhaps just fed up with the complexities of lettings. The latter doesn’t mean they have bad tenants or properties, it is more likely to be a genuine personal reason.
So, we would advise anyone wanting to become a landlord or add to their portfolio to consider buying a property with a tenant already in situ for the following reasons.
· Often the landlord will offer a slight discount. The number of buyers is less than if it was offered with vacant possession. Therefore, by the very nature of the laws of supply and demand, they will often offer around a 5% reduction. For them, they have the security of knowing if a sale falls through, they are still receiving the rent as income.
· The quality of the tenant is easy to see. By looking at how they live and their payment records, you’ll get a decent feel for a good or bad tenant.
· You’ll get rent from day one. So, no void periods and limited agent’s setup fees. Also, if the agent is prepared to continue managing, they must be confident in the quality of the let.
· The tenant will quite often freely let you know what the issues are with the property. These are often small niggles, but the tenants will be honest as they are keen to impress you as a potential landlord.So, for a first time or easier solution into buy to let, I would always recommend buying a property with a tenant already in place. It is often smoother and more cost effective.
Category: Buying to let for the first time? Want an easy Solution?
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016