As one of the leading letting agents in Gloucester and Cheltenham, we talk to many landlords, both current and prospective regarding rental properties on a weekly basis, and if you are considering buying a property for rental purposes, there are many positive reasons to do this, but also a lot of aspects you should be considering.
When it comes to rental properties from a landlord point of view, it can look easy to make your millions, but the truth of renting property is that whilst there is a lot of potential profit to be made from a landlords and investors point of view, there are also challenges that come with renting as well. From finding the right tenant through to keeping on top of the regulations and laws that apply to landlords, which is why so many people will use a letting agent to take care of everything for them.
If you are currently considering buying a Buy To Let property in the area, here are some things that you should think about before buying the property that you plan to place on the Gloucestershire rental market.
As we mentioned above, we get asked by many prospective landlords about investing in the area and we recommended that if you are considering entering into the local rental market you also seek the same advice. A good Gloucestershire letting agent will be able to tell you the best areas to invest, the expected rental incomes, the potential yields and also the current demand, all of which are key factors if you want your property to be profitable and not empty.
Medium To Long Term Investment
As the Association Of Residential Landlords correctly points out, property should be considered a medium to long term investment, as if you are looking for a short term investment then it is probably not the right area for you. It can take some time to get the property ready to let, find the right tenants, overcome the obstacles and then turn your investment into a money making one, which of course, is not really suited for a short-term investment opportunity.
Know Your Figures
You need to really know your maths when it comes to BTL property, as you need to make sure that if your buying with a mortgage, then the rental income will cover this and of course the costs that a rental property carries. From letting agent fees through to refurbishment and safety certificates, there are cost factors you really must consider before investing in property, as if the numbers do not stack up, the investment will never really work out for you.
Standards Are Important
When renting a property it can be easy to assume that you can go cheap and cheerful, but it is important to remember that not only do well decorated and well-presented properties attract more income, but they can also make tenants take care of the property to a higher level as well. These will be couples or families living in your property, so it is important to get the property to the highest standards possible for the long-term stability of the investment.