The size and condition of the property you buy for let are just as important as the location. Explore the market and discover what sizes of flats or houses are most attractive to tenants in your chosen area. Also, think about the age of the property and how much maintenance work will be required. Will you need to renovate straight away or is the property in peak condition?
Maintaining Your Property
If you can’t find tenants during certain periods, you may not be able to pay your mortgage with rental income. By planning ahead and predicting vacancy periods, you can prevent being caught with unpaid mortgage installments. If you can save money from part of your regular rental income, this could help with payments in the future. However, if your property is in an area where there are more houses than tenants, you can get into mortgage arrears.
In addition to the basic repairs and replacements you may have to make, your property will be attractive to future tenants if you maintain every aspect of it. Routine improvements at the end of each tenancy can make the property be rented quickly. This will reduce the likelihood of having long vacancies.
Should You Use a Managing Agent?
If you will have little time to deal with the landlord responsibilities involved, you can hire a managing agent. An agent can take care of any problems that occur. However, the agent may charge anything between 10% to 15% of your monthly income for the services offered. For more information, you may also check http://www.ehow.com/videos-on_3806_public-speaking-tips.html.
Some online property managing companies charge owners as little as 5-6%. These companies have agents around the country to manage your property. However, they don’t have the overheads associated with having physical offices. This is why their overheads are low and why the can charge a lower percentage. Check out peter spann property for more information.
You Legal Responsibilities
As the property owner and landlord, you will have to make sure repairs are carried out quickly. Gas, electrical fittings, furniture and furnishings should meet the safety requirements and other tenancy rights.
You are also legally required to hold the tenants deposit in an approved scheme. If you’re using a managing agent, they will do this on your behalf (worth asking them to provide written confirmation that this is the case though). If you intend managing the property yourself you can use the government approved Deposit Protection Service.
The above are some investment property basics you should know about rental property investment.