Investing in property is a fantastic way to earn lots of money. The best way to do so is by buying a property and renting it out. As such, you become a landlord! For any new landlords, I have some essential advice you should read:
Think Small Rather Than Big
The first piece of advice I have for you is to invest in small properties. It’s common knowledge that people would rather invest in a flat than a proper house. This is because it’s far more affordable for them, and people prefer to own houses. So, you can get more out of your buy-to-let investment if it’s a flat. Don’t worry if you’ve already invested in a house; you can still make it work. Split it up into apartments for people to rent. Depending on the size, you could have enough room to create four apartments from one house.
Keep The Property In Good Condition
As a landlord, you want to find residents for your new property. But, you won’t do this if you haven’t got a good property to show off. No one will move into a place that’s old and dirty. If things aren’t working, they won’t want to live there. So, you have to ensure that your property is kept in a good condition, to entice people in. Plus, if it’s bad, then issues can occur during their residency. And, you’ll have to pay for any problems with the home that weren’t your tenant’s fault. So, it pays to keep it in good nick.
Get Long-Term Leases
When you invest a lot of money in a property, you want to get the most out of it. The best way to do this is by finding long-term occupants. You want people to live in your property for as long as possible, and pay rent. Plenty of companies offer Landlord Services to help you find long-term leases. The benefit is this is that you minimise the amount of money you need to spend. With short-term leases, you have to spend cash after the occupant leaves. You’ll have to get it ready for another resident, and it could be a while before one comes along. All this means is that you’re losing out on rent money. So, get long-term leases and maximise your return on investment.
Ensure Rent Is Never Missed
On of the biggest issues as a landlord is dealing with delayed rent. You want to get your payments on time, all the time. When a tenant doesn’t pay rent, it can be a problem for you. There are various solutions to ensure that rent gets paid on time, every time. The easiest of which is to set up a direct debit with your tenants. Carry out a brief credit check to see if they’re capable of committing to a direct debit. If they are, then you have an instant solution to the problem of delayed rent. With a direct debit, you can take their rent whenever you need it, and they don’t have to do anything.
Take my advice onboard and you’ll soon be running a buy-to-let empire!