Becoming a landlord is something that’s appealing to many, and there’s good reason for that! Investing in the right property and managing it correctly can result in making yourself a small fortune.
We work with many different types of landlords at Ultra Lets - from first time investors to landlords with large portfolios. This articles shares 7 top tips for landlords to consider when investing.
1) Calculate your yield
Your yield is your annual rental income expressed as a percentage of your property’s value. The higher the percentage, the more profit you’re likely to make. Before you invest in a property, we can advise you how much rental income you’re likely to receive so you can make sure it’s a sound investment with a decent yield.
2) Always have a contingency fund for rainy days
Don’t rely on your rental income to cover potentially costly improvements such as new boilers, roofs or structural issues. If you’re investing in property, expect the unexpected. Part of being a landlord is maintaining the quality of your property and this means you will have to update and make changes from time to time.
3) Do plenty of research
There’s more to being a landlord than simply purchasing an investment property and moving in a tenant. You need to know all the legislation and regulations … a letting agent will be able to advise you on this to make sure you’re fully clued up and won’t trip yourself up.
4) Don’t spend too much time or money decorating your rental properties
Landlords can sometimes decorate properties to the same standard as how they would their own home. This can reduce your profits and make it more difficult to find a tenant you think is suitable, meaning your property is empty for longer. We always recommend decorating with quality products that are durable and easy to maintain. You have to account for a certain degree of fair wear and tear with rental properties.
5) Be careful where you invest
Some areas in Hull are more profitable than others, go for areas where tenants most want to live. Speak to the Ultra Lets team to find out where the rental hotspots in Hull are.
6) Be cautious renting to friends or family
We normally recommend not renting your property out to friends or family. It may affect your personal relationships with them. Friends or relatives may think they can pay their rent late and you’ll let them off, or if they damage the property in any way this could lead to a falling out. Try to keep things as professional as possible.|
7) Work with a reliable, trusted letting agent
There are many benefits to using a letting agent. They act as a point of contact between you and your tenants so if there are any issues, the letting agent can take care of managing them. They have experience dealing with difficult situations and can offer advice on your rights as a landlord. Letting agents have official procedures and paperwork in place to ensure you’re protected.
Do you have any questions about becoming a landlord and questions about what properties to invest in? Contact us today: 01482 562562 or firstname.lastname@example.org.
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