If you are looking at investing in rental properties in the UK, then you are going to need to know what you are doing before you jump in. In this article, we are going to be looking at five of the best tips for investing in rental properties in the UK, so keep reading to find out more.
1. Get The Best Mortgage
There are so many buy-to-let mortgages available on the market right now. The good thing about this is that it means people who are looking to buy-to-let have a variety of options to choose from when it comes to choosing a lender. If you go on Compare The Market and just have a quick search for this kind of mortgage, there is currently just under 400 product options available to you right now.
Look at the economic factors of the area that you are thinking of investing in. You need to be considering which places have long-term growth when it comes to things like house prices. Look for a place that has financial stability, and this comes from things such as infrastructure investments and the employment rate. You need these things to be steady at a minimum for this to be a solid investment.
3. Location, Location, Location
Because of how important this is, we are going to include it twice. After you have narrowed down your location search, you need to look deeper into the amenities of the area so that you can see what is around. What are the bus routes like? Are they frequent? Is there a train station nearby? Are there things within walking distance? These are all things that need to be considered in the location that you choose.
4. Budget For The Unexpected
When the Tenant Fee ban came into force, landlords became responsible for costs such as letting agent fees, maintenance, and management. You need to factor these things into your calculations as this will help to give you a better idea of how much everything is going to cost vs how much you are going to be bringing in. Some landlords put up the price of their rent dramatically in order to cover these costs, but this is not something that you should do and if you are doing this, then maybe this market is not for you.
Look At Amenities
Finally, you need to consider what is going to be offered inside the building rather than just outside. Those properties that have an onsite gym, a concierge and communal areas are more important than ever to renters. What this means is that the demand for these is going up, so you need to be viewing your investment as someone’s future home. It is not just a source of income, and if you look at it this way, hen you are never going to get anywhere on this market.
We hope that you have found this article helpful, and now know five great tips for investing in rental properties in the UK.