Three top tips for wannabe landlords

John Fitzsimons highlights three things to consider if you're planning a buy-to-let investment

This is a script of a lovemoney.com video. Instead of reading it, why not watch the video instead?

John Fitzsimons highlights three things to consider if you’re planning a buy-to-let investment

Buy-to-let landlords are often portrayed as the greedy devils of the housing market, but they fulfil a vital role in providing decent rental property for those people that don’t fancy buying. You also have the opportunity to make a few quid if you get your investment right. So what factors should you be looking at before taking the plunge into buy-to-let?

#1 – Use a broker

The crucial first step to becoming a buy-to-let landlord is to get the right mortgage, and in my opinion this really requires the expertise of a broker. In the main, the lenders that are currently competitive in the buy-to-let market are not lenders you are likely to see on the high street, so it’s tough to compare their attributes yourself.

Brokers may also have access to exclusive deals that you can’t access on your own.

#2 – Get on top of the legislation

There is now a vast amount of legislation that you need to be aware of if you are considering a buy-to-let investment.

There are the fairly simple areas, such as what you are expected to provide for the tenant. However, landlords also have to keep on top of laws restricting how they can deal with unruly tenants, or those refusing to pay the rent. Landlords even face the prospect of a national register, where tenants could publicly review their old landlords!

If you want to make the investment, make sure you know exactly what will be expected of you as a private landlord.

#3 – Managing your property

The last thing to consider is whether you want to use a letting agent to manage your property, or do it yourself. While they might save you a bit of effort, unless you live miles away from the property, personally I’d avoid them. Letting agents cost a fair bit, and don’t really provide a service you can’t do for yourself.

This is a script of a lovemoney.com video. Instead of reading it, why not watch the video instead? You can find the video here.