Managing Your Buy to Let Property
Buy To Let Investments - Choosing and Managing Your Property
PROPERTY ADVICE BLOG - Buy To Let Investments - Choosing and managing your property
Questions to consider before you make an investment
• How much profit do you expect to make from this property? Is your forecast realistic?
• Do you have enough funds to invest and maintain a property?
• Do you have sufficient savings for any problems or difficulties?
• Have you taken specialist property advice on tax related earnings from rent?
Questions to consider before you choose your property
• How long do you plan to rent out your property for?
• Have you spoken to an experienced letting agent about the costs?
• Have you considered the type of tenant you could attract?
• What type of rental income is realistic for the area?
• What type of tenants would be attracted to the area?
• Have you looked into the implications of an Assured Shorthold Tenancy?
• Has your solicitor made you aware of the legal implications of renting?
• How much will you have to pay out for repairs, management etc…?
• Have you thought about how to pay the rent if you can’t find tenants?
• Are you aware of safety regulations?
• What would you do if your tenants damaged property?
• Would you consider using a letting agent and would you be able to afford their fee?
• Will your net amount of rent leave you enough profit after paying for the running costs?
• Are you aware that the property could decrease in value?
Who will manage your chosen property?
If you decide to manage your property yourself, you will need to have the time and energy to commit to your new ‘business’. Some of your new responsibilities may include:
• Advertising for tenants
• Checking references
• Organising payment by either collecting the rent or through the bank
• Dealing with the general maintenance of the building
• Repairing and replacing fabrics and furnishings
• Dealing with problems such as tenants leaving at short notice, rent arrears, damage etc…
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