Buy to let landlord's tips
Buying tips
- Be cautious of investment property ghettos. If the area is full of buy to let investors the supply of property to let might outweigh tenant demand and create pressure to reduce rents.
- Consider established areas with good communication links.
- Research tenant demand as your highest priority.
- Consider ongoing costs, e.g. maintenance, service charges etc.
Buying below market value
- Be cautious of auctions, off plan developments and developer discounts.
- If you are buying flats note that ground floor flats are less secure and are the first to suffer from damp.
- Identify several properties to buy and always offer well below market value on all of them. There is always somebody who is desperate to sell.
- Form close relationships with divorce solicitors, probate solicitors and relocation agents. Meet them on the professional social circuit and make sure they are aware of your reputation for doing quick deals.
- Be prepared to buy tired properties and refurbish them. Build a team of reliable tradesmen who will react quickly.
To buy or not to buy?... that is the question
As soon as you find a property you like, run a "To Let" advert in the local press. If the phone rings a lot, buy it. If not, walk away. A variation on the theme would be to run a display advert "Seeking long term tenants. I am a portfolio landlord. You find your perfect property and I will consider buying it and renting it back to you."
Demand and professional guidance
Talk to three or four independent local property managers who specialise only in letting.
Ask them the following:
"What properties are in demand and why?"
"Furnished or unfurnished?"
"Type of tenants?"
"How much rent?"
"Location?"
"How long has your business been established and how many properties do you have under management?"
University lettings
Talk to Student Letting Officers - build rapport so they promote your property above others. They too can give you good advice on demand, i.e. where, why, how much etc.
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