Redstones Lettings : 6 Tips For Potential Landlords

With interest rates on savings continuing to stay low, we are often asked for our opinion on the buy-to-let market and whether the lettings market offers the best return on financial investments.  While we are property management specialists rather than financial advisors, this is what I’ve observed from working on a daily basis with landlords for many years.

Do your research : As we know at Redstones, letting your property can reap a significant return on investment.  With all investment, however, you need to understand the risks as well as the benefits. House prices – and average monthly rentals – are on the rise but this can change.  A buy-to-let property is not the same as renting out your house for a while when you can’t sell it in a slow market – it is a long-term investment.

Choose your area wisely : Tenants choose properties for variety of reasons, for example,  good access to commuter links, reliable public transport and for families it also means good schools.  All of these factors should be considered when considering a suitable area to purchase a buy-to-let property.

Financial considerations : As a potential landlord you need to work out not only what you will need to borrow but the amount of rent you will be able to charge.  Speak to a local lettings agency who you can trust.  At Redstones we advise our prospective landlords on the likely rent based on our extensive local knowledge and experience.  You will also need to research the market to obtain the best buy-to-let mortgage.  Don’t forget to build into your calculations the possibility that you may occasionally be without a tenant and also allow for any lettings agents’ fees and ongoing maintenance if you are outsourcing the management of your property.

Your tenant : The type of tenant you are targeting will influence how you present your property. The expectations of students, professionals and families are all quite different.  Again, an experienced lettings agent can offer advice on this issue.

Explore alternatives : To increase their options some property owners look outside their local area. Once a property is purchased they can then place it in the hands a reputable lettings agent.  A property which requires renovation may also be a better long-term investment as it can generally be purchased at a lower price – but remember to include refurbishment costs in any financial calculations.

Lettings agent or hands-on landlord?  Lettings agents can offer a range of services from ‘introduction only’ to a full property management service.  That advantages of the full service is that if any maintenance work is needed, the agent will take care of the arrangements. Lettings agents will also offer accompanied viewings to save you the time and commitment so you can get on with your daily life.  At Redstones we also offer our exclusive Platinum Total Care service, giving you peace of mind in the event that your tenant falls into arrears. Whatever option you choose it should be something that works for you as a property owner.

To discuss the options available to you as a landlord, contact Redstones today.