The majority of investors view buy-to-let property as a long-term commitment, but there is no reason why you cannot enjoy significant returns in your early days as a landlord.
The following tips and techniques can help you make the greatest and fastest possible profits on a new property investment:
Choose the right location
Location is the most important factor when choosing a property. It is often the main factor dictating the success of a property investment in both the short and long term, so it’s important to get it right.
Many first-time landlords do not make the most of the opportunities available to invest in properties outside their own area. To make the most profit possible quickly or over time, be willing to search throughout the country – perhaps even internationally – to find a property that will give you the best possible results.
To invest in a property that isn’t local you will need a letting agent to manage the property for you, and this means they take a percentage of profits. However, this significantly reduces the amount of work involved with your investment and provides added safety nets in the event of tenant problems. When free reign to look at properties across the UK and beyond is added, the benefits are almost certainly outweigh the drawbacks.
Choose the right property
When it comes to residential property investment, the type of unit is as important as its location. When you choose a buy-to-let investment property, it needs to be appropriate for the type of tenants you are likely to find in your chosen location. If you are seeking to attract young professionals, for example, a flat is a better bet than a family home.
As for the state of the property itself, it is important that it is in good condition, with quality fittings and at least vaguely attractive décor if you want to maximise your rental yeields.
Beyond this, the most important added attractions are good access to local amenities and public transport links. These count for a lot more than a spa bath and avant garde décor worthy of the latest contemporary design magazines.
Maintain a proper tenant relationship
Maintaining a proper relationship with tenants is all about balance, and getting it right can help you succeed with your property investment. Of course, you should maintain a pleasant and courteous relationship with your tenants, and be on friendly terms as far as possible. However, being on friendly terms is not the same as being friends. Your relationship with your tenants is a professional one and forgetting this can make things difficult when it comes to increasing the rent or if there is a dispute over who should pay for a repair.
You should also remember that, however friendly you are with your tenants, there are still certain obligations you are legally required to observe, such as giving them 24 hours’ notice before visiting the property.