Let me start off by stating something you already know, buying to let is a lucrative career and also expensive. But there are a few things you need to consider when venturing in such a project.
Remember to draw up a checklist, it will help you in the long run. The four things to include on this list are;
- The profile of the clientele you wish to cater to; if you are looking at students, purchase an apartment near schools and colleges, it needn’t be costly or fancy, as long as the basic amenities are taken care of. If you are looking for working class clientele you may look for apartments around offices. Basically, target areas in the more bustling parts of the town or just on the outskirts. A crime-free neighborhood, it will also get you tenants easily and protect any furniture you may have inside the place.
- Hire a maintenance service, lawyer and/or agent, when prospective clients come to take a look, you want them to see the place as something worth living in rather than one they’ll invest hours to clean up. Neither will you enjoy hearing plumbing complaints, besides you need to maintain any safety laws, deposit protection rules and immigration checks necessary. It is always better to buy a place already in good shape and maintain, or at least to access the repairs and the repair costs you may incur buying a not so maintained house. You want to keep to your budget after all, and still have a place you can proudly show.
- Buy landlord insurance, there is no telling what damage an idiot tenant is capable of! And there is only so much security deposit you can ask for, and still get tenants. The home is ultimately under your name so any damage is ultimately on your head, sending the idiot to jail has no monetary benefits!
- SOS, keep aside a chunk of money just in case there is need, if any repairs come up or if you don’t find a tenant In time to make the months loan payment, or in case the tenant can’t make the payment. Besides there are taxes, electricity and other bills, the cleaning service that keeps the prospective clients from running, all looking to get a chunk of money. Remember as high a chance of profit there is, if the market crashes or unexpected projects come up in the area you can also suffer a loss.