Does the idea of renting out real-estate intrigue you? This may be because you think becoming a landlord is a walk in the park. However, in order to succeed you need to put in the work. A common misconception is that a landlords job is simply to collect rent but there are actually many duties you must take on to become reputable and successful.
If you have the funds in place and are ready to become a full-time landlord, take a look at these top tips which will help you get the most out of your investment.
Research is key
Before investing in the buy-to-let market, it is important that you understand how it operates. To find out this information, you need to conduct thorough research to determine which property you want to invest in. This involves seeking out location hotspots where there is high rental yields, tenant demand, and returns are high and house prices are fair. By choosing a property based on these attributes, you can work out your potential returns and measure your expected success.
Although choosing the right property is important, it is even more crucial for you to understand your duties as a landlord. Your role will depend on how much responsibility you want to take on, although most first-time landlords tend to take on all aspects with a hands-on investment. This means you would handle everything from tenant screening and rent collection to maintenance and repairs. This is a lot to take on, so you should only consider this route if you have the time and capacity to do so.
Work with professionals
Before purchasing a property, you should consult with various experts, such as experienced landlords who can share their experiences with you and help you understand how the property market works. You could consider shadowing a landlord you are friendly with to establish whether or not the role is right for you.
Many first-time investors tend to liaise with property experts like RW Invest, as they can offer their professional knowledge and also help them find the perfect property to invest in. Companies like this can help you every step of the way. This includes appointing you a conveyancing solicitor to help with all the legal documents. If you decide to take on a hands-off investment, they can recommend a reputable property management company who will take over all your landlord responsibilities enabling you to receive as much passive income as possible.
Choose the right tenants
Once you’re at the stage where you have purchased the right property and are ready to get tenants in, you need to make sure you target the right people. For example, if you have purchased a property in the city centre, you will most likely receive the most interest from students or young professionals who are looking to be near their place of study or work. Once you’ve established your target market you can then construct a marketing plan to engage tenants to come and view your property up close.
If you have chosen a property in a prime location, you will most likely attract a lot of attention, so you will need to perform a tenant screening to find the right tenant. This includes performing background and financial checks to ensure that you can trust the tenant to pay on time and stay out of trouble. Once you have found the right one, you will then have to sit down and sign contracts. In order to avoid confusion, you should explain everything need to know which will prevent any issues later down the line.