With uncertainty over pensions and interest rates on savings, many people are turning to buying property as an investment with the intention of renting it out. Whatever the reason for wanting to become a landlord, there are some points that you need to take into consideration first.
Keep tenants in mind when choosing your property
The first step on your path to becoming a landlord is to find and purchase a suitable property.
- You may already own a property that you no longer need to live in so wish to let it out.
- If this is the case, you will need to inform your mortgage company.
- When purchasing a property to let, you may need to look at a buy-to-let mortgage.
- Be advised that the deposit required is often much higher than other types of mortgages; you may need a deposit of 30% or more of the property value.
When choosing a property, keep your target tenants in mind.
- If you are looking for student accommodation, you will want to look for a property with multiple bedrooms close to a university.
- Whereas if you want to attract young professionals, a one or two bedroom flat close to a railway station could be more suitable.
- If you are thinking of investing in property in an area that you do not know very well, it would be a good idea to speak to local letting agents who know the local area inside out and can tell you which areas are most desirable for different types of tenants and the average rental prices.
Managing the property and tenancy
Once you have purchased your property, you will want to ensure that it is looking its best, both inside and out, so that you can get potential tenants through the door.
- Most landlords employ letting agents to manage the advertising of the property and find tenants.
- The letting agent will take care of viewings, references, credit checks, and so on.
- Once the tenants are in place, you have the choice of either managing the property and tenancy yourself or entrusting the letting agent to manage everything on your behalf.
The tenancy agreement is the most important document that you will need to have produced when letting a property.
- The tenancy agreement sets out the conditions of the let and is legally binding
. The most common form of tenancy agreement is an Assured Shorthold Tenancy, which gives you as the landlord, the right to repossess the property at the end of an agreed term.
- Any deposit taken as part of an Assured Shorthold Tenancy must be protected by a Tenancy Deposit Protection Scheme.
Property management in Sittingbourne
Family Homes are letting agents with offices in Sittingbourne and Faversham. We have been in business for over 25 years and are the leading and largest independent specialists in property lettings and management in the area. Family Homes manages rental properties across Kent, including as landlords of our own properties. If you would like more information about becoming a landlord or have a property to let, please contact us.