Category: family business
Probably one of the easiest ways to increase your monthly income is to let out properties to tenants. However, things are not as easy as they seem, since there are certain essential aspects you need to consider if you want to become a landlord and one of them is that no one loves landlords. If you want to know how to become a BTL landlord, you should definitely consider these golden rules mentioned below in the article.
Tenants are not your friends
This is the first and most important rule you have to keep in mind if you want to become a buy-to-let landlord. Experts in the field advice first time landlords or wannabe ones to avoid getting too familiar with their tenants. After all, what you have with them is a business arrangement, not a close friendship.
Choose your area wisely
Many landlords that lack experience are on the opinion that the best option they can resort to is to rent out properties that are located in the proximity of their homes. The truth is it is perfectly feasible to rent out properties that are not located in your own area. In such cases, you can resort to the professional help of an agent to do the work on your behalf. This way, you will save a great deal of money and time. Another important aspect you should consider when choosing your area is related to public transport. Contrary to what you may believe, among the top priorities on tenants’ wish lists is for their renting property to be located somewhere close to public transport, and not to have a waterbed or a built-in Jacuzzi.
Set up fair rents
If you are new to this industry and do not know exactly how much to charge your tenants, the best way to find out how the market goes in your region is to register as a potential tenant on one of the most popular websites to get a clearer idea on this aspect. Treat this as a real business and as a full-time job, not a hobby, if you want to benefit from the desired results.
Don’t forget about BTL mortgages
If you are interested in purchasing a property just to rent it out, know that you will also need a buy-to-let mortgage. There are numerous BTL mortgage deals on the market, which means that choosing the right one may seem a bit challenging and daunting for a first time landlord. You have to consider some aspects such as the introductory rate, the main rate, and the fees and so on, only by doing some quick online research.
There are legal responsibilities too
As a landlord, you should know that there is a series of responsibilities in law you have to take into account. This means that before you enter this field, you learn everything it is to know about the local laws and regulations to ensure everything is in order the moment you hand in the keys to your new tenants.