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If you find that interest rates are low enough, you may feel tempted to invest your money in a buy-to-let property. This is a common enough practice for many people, who wish to earn a little extra from tenants.

Buying a property to let is a fantastic option, according to many real estate agents. As a matter of fact, many of them help clients with exactly the task of finding the right property to let. There are a few things to consider in regards to such investments

• Who is the target tenant – this is perhaps the most important decision you have to make. It is also the one that will significantly influence the buying process. Who will the property be rented to and how much money do you expect to make of this? You need to research the chosen area and what people usually search properties there. In doing so, you will find out whether you want to target students, families, retirees or professionals. The type of tenant will largely determine how much you can charge for the place.
• General area – the area you buy the property in is also an important factor to consider. It will largely determine your yield and return, which is essential for every investment. Location matters a lot. People are always more interested in neighbourhoods with more amenities, good public transport options or just general proximity to important areas in the city. Of course, other things could also attract tenants: nightlife, sports clubs, school and university campus, etc. Put yourself in the shoes of your desired tenant and consider what they want the most.

• Work out what you can afford – if you want to be a landlord, you need to know what you can afford. Being a homeowner yourself is a good start to be accepted for a buy-to-let mortgage. You need to keep in mind all of the budgetary requirements since a buy-to-let property is pretty much like buying your own private home. There may be unexpected costs that you also need to plan for.
• Mind your legal responsibilities – as a landlord, you will have some responsibilities. After all, renting is much like running your own business. There are tax purposes and additional legalities, such as safety certificates, landlord license and energy performance certificates to name a few. Complying with these regulations is the only way to avoid big fines so ensure you are prepared.
• Should things go wrong – it is not possible to plan for everything, but you should do your best. Many things could go south, such as bad tenants and empty properties. Having the right safety processes in place will help you deal with them much. You need to prepare with some knowledge of eviction notices, tenancy agreements, legal matters and more. Make sure you pay attention to tenant referencing to have peace of mind about your tenants.

Now that you know what it takes to find a buy-to-let property and to become a landlord, all you have to do is find the right property for this purpose

At Open Estate we can help you with that. Just contact us on 01923 537 111 with your query.

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