1. Manage your borrowing – Many investors understand the benefits of investing into property however many also have a gun ho approach. Most work out what they can afford now without thinking 1, 3 or even 10 years down the line. You have to ask yourself can you afford the mortgage if the property is not tenanted and importantly can you afford the mortgage if interest rates rise?
2. Always vet your tenant – Its very exciting getting your very first tenant in your first buy to let. Unfortunately this excitement can soon turn to despair if the tenant becomes unruly, fails to pay the rent or even worse refuses to leave. You can prevent many of these by simply completing thorough checks at the beginning.
3. Keep tabs on income and spending – By keeping thorough records of all incoming and outgoings you can benefit from landlord breaks in regards to tax. This will also help you any disputes you may encounter with what has been paid and what hasn’t.
4. Don’t rely on growth – Many property investors are adamant that their property will grow in price. Whilst this is more than likely the case over the medium to longer term we have also seen in recent years mini crashes. This has to be in every investors mind in case they need a quick sale and could potentially have negative equity.
5. Know your rental market – Are you within the commuter belt, are you letting to students or is your house near great schools for young families. Make sure you know your market and who are your potential tenets. There is no point having a 5 bed family house in an area where the majority of renters want 1-2 bed apartments. Again like any investment, do your research.
If you would like more information about becoming a property investor, or if you are an existing investor and would like further advice about our tips, call us today to speak to one of our helpful consultants. We provide tailor-made solutions based on your requirements, free of charge, to ensure you maximise your property portfolio.
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