Top Tips For Good Property Letting
Posted on December 19, 2008 in the Real Estate category
-Without Making Biweekly Mortgage Payments- Or Changing Your Current Mortgage. |
|
|
|
Introducing A New Mortgage Loophole That Will Quickly Build Your Home Equity & Effectively Reduce Your Mortgage: “Mortgage Cycling Revealed” |
If your pension is under performing and the stock market is just costing you cash, then maybe property letting is the route you should take to secure your financial future.
Buying a house and doing it up could be a sensible thing to do – especially if you have relevant building or decorating skills that you can use to keep the costs of the project down.
Buy to lets are very important to the UK property market. In the last week, the British Property Federation has said that property letting is key to solving the perceived housing crisis in the UK.
It says that government research shows demand for rented property is now 25 per cent higher than for houses purchased privately. And it believes that difference will continue to rise if prices increase further.
The BPF believes that it is only by renting a home that millions of people who can’t afford to buy a home are going to find somewhere to live. It points to a similar development of property letting in the United States and Germany.
While the BPF believes the solution is a professional rental sector where property managers run domestic lets on a large scale, as with commercial property now, this situation presents clear opportunities for small investors – you.
So if you decide to go down that route, or indeed you already have a home that you rent out to others, how can you make sure that you and the tenant are perfect for each other?
Estate agent Knight Frank recently issued a series of tips for both landlords and their tenants to help them get along.
For you, the key thing to remember is that property letting is a business. And that means if you give the customer (the tenant) what they want, you will maximize your profit from your investment. It’s as simple as that and the reason why it is key to research your intended market thoroughly. Ensure you understand the kind of people you hope to rent to, and the lifestyle they lead.
Families renting a four bedroomed house want space, a garden, safety and no fancy features that could be broken by the children. Professional couples might want more of a show home and will be willing to pay a little extra for the perfect location or feature in the home.
Next up, you must remember to make your property neutral but not bland. To impress tenants you need to declutter and depersonalize the house before viewings. Unless they are renting it furnished, they need to be able to imagine that they will be happy there.
Next in the list of property letting tips is to keep the house in an excellent state of repair. A house in an excellent condition is much more likely to be returned to you that way, whereas if it’s a bit tatty, tenants are less likely to take care of it.
You are legally required to get the boiler serviced each year, and you should ensure the electrics are up to scratch too.
Finally, ensure you tell your mortgage provider and buildings insurer what you are doing. It may seem tempting to keep it quiet and save a little money, but any claims you have to put in may be rejected if they discover you are property letting and haven’t told them.
For your tenants, the estate agent recommends they have references ready in plenty of time, ask for any improvements to the property to be done before signing the lease, and commit to at least a year’s rental, so as to be more attractive to landlords.
Related Posts:
- No related posts
Comments
27 Responses to “Top Tips For Good Property Letting”
Leave a Comment
I had been always wondering, that where will people stay with more than 1 million houses in foreclosure alone in US.
Nice and relevant post
In the US there are tremendous opportunities to purchase foreclosed properties, but unfortunately the banks are strict with lending requirements.
Eventually something has to give, because there are plenty of willing tenants.
Good points to ponder especially to those who can’t still afford to buy a house of their own. But considering the high cost of living nowadays,we can’t figure out which is which. To buy or not to buy.
Buying Properties was a big worry for me.. thnx to this it helped me a lot on property buying and selling
Although if you gave this advice two years ago; you’d be a bit screwed for at least the next ten years until you make back what you just lost.
Are we at the bottom of the market yet?
I have several rental properties here in Australia and I have had to learn the hard way that good tenants are not always easy to come by.
We manage all of our properties ourselves and have found that once you learn to weed out the good tenants from the bad it’s easy to do and in general is saves us the 15% that ends up with property managers.
I live in an area with a very competitive market for vacation properties and condos.
Unfortunately, we’ve seen a huge decline, not only in the homes but also in the rental properties, as well.
It’s difficult for me to even start focusing more attention on the rentals becuase nobody in our area is interested in them at this time.
Our market has plummeted. But we hope the new year will be better for all real estate agents wold wide.
Thanks!
Buy to Lets aren’t always as easy as they appear. Get a few bad tennants and you’re looking at major repair bills. Young people today don’t respect other people’s property, I know this because we have a guest house and you should see the way rooms are left after only a couple of nights stay. Shocking.
Think it through, when considering buy to let. It can be a rough road if you’re not careful.
Mike
Hey, It is cool idea, Really rocks buddy, I prefer to invest into real estate now, Thanks for the tips
My mother’s house is located near the market, the malls, the churches, and bus stops. When most of us got married and moved out of the family home, she put up a room-for-rent sign after a month of renovating and repainting. It’s that simple to have a nice nest for her eggs.
I am new and looking forward to learn property investment
This is indeed very informative especially now that we are in the midst of financial crisis.I will keep in this mind.
Awesome article, excellent strategy. Thanks for all the info
We have a similar situation here in Texas. Lots of people have lost their homes due to foreclosures and weather catastophes, so there is alot of demand for rentals. Nice post.
This is an excellent way to build a portfolio. With the foreclosures here, investors are buying them, refurbishing and renting them out. When the market comes back, their equity will be huge.
Their analysis makes sense. Because credit is drying up, people can’t afford to buy houses anymore. So they turn to renting, and renting acquires a larger market share.
Of course, once the market correction occurs, housing prices should drop substantially until they are roughly level with where they were 12-13 years ago. I think we will have reached bottom then.
You’re spot on. I think with the economy the way it is today, more people are trying to sell their houses. They don’t understand that six hours of “flip this house” on the DIY channel is no substitute for a real estate agent’s knowledge. Still, it’s a great idea to, instead of “flipping” houses, to turn around and rent them. Thanks for the advice!
Interesting read. I’m planing to buy a house this summer — still have a bit to save for the down payment.
People will rent housea, because they cannot afford buying one, then how am I supposed to buy one to let, when I cannot even afford one for myself? This is a good idea for the rich and famous!
TO keep the property in the best shape possible is the best thing to do. People think that it’s awaste of money to repair the house. But it’s essencial to sell well.
Myrtle Beach Real Estate prices are down 25% and it’s an ideal time to purchase. Oceanfront 3 Bedroom condos selling for over a million can now be bought for $400,000- great time – close to cash flowing after taxes. Ideal investment- since the stocks are down and considered risky.
Renting out a property is not for the faint of heart! I recommend staying with a higher end property that attracts a good rent if it’s your first rental.
This is really thoughtfull, I was just thinking about to buy a house or to wait untill the crisis is over but appearantly maybe it is just now a good thing to do. Thanks.
In the UK at the moment some areas aren’t seeing rental rises due to the high number of ‘reluctant landlords’ (people who can’t sell their house so rent it out instead) joining the market. Hopefully as soon as house prices start to rise again this will sort itself out, as many Buy to Let investors can barely meet their monthly mortgage payments.
Are you observing only UK market or some others as well ? Asian countries booming now from what I heard of.
You are legally required to get the boiler serviced each year, and you should ensure the electrics are up to scratch too. Don’t agree.
It is something that all property letters should make sure is a priority. Make sure you service your boiler regularly and it could save you money in the long run!