Buy to Let properties
Discussion
I've got approx. £200k which i'm intending on investing in a portfolio of residential properties to let. My home town of Leicester is widely regarded as one of the next major property growth areas and has potential for student & professional tenants. I think i've got the hang of the Buy to Let Mortgage packages (15% min. down, 85% mortgaged, rent has to be at least 125% of mortgage repayment). Having never rented property before i'm trying to gather as many real life landlord experiences prior to diving in. I realise that property type & location, watertight tenancy agreements and careful tenant selection are key but what about letting agents/management companies etc.
Any info. would be most helpful.
Any info. would be most helpful.
All i can tell you is that im pulling out.
Sell the house, take cash and run.
Unless of course you in it for the very long term 15 years + in which case good luck. I was only in it really for a few years so ive decided its more hassle than worth.
My only advise is get a good solicitor and go for full managment
Sell the house, take cash and run.
Unless of course you in it for the very long term 15 years + in which case good luck. I was only in it really for a few years so ive decided its more hassle than worth.
My only advise is get a good solicitor and go for full managment
The most important thing is quality of tenant. For a good tenant you need a good property. Obviously not all properties will be palaces but it needs to be in a better condition and cleaner than the other comparable properties in the area in order to get the quality of tenant.
Get a good tenant and then manage the property yourself. Full management charges will otherwise make your property unviable as an investment. Unless you're very unlucky with your property a good tenant will not be a big cause of grief and you'll rarely hear from them.
Having a decent & clean house will also help when you come to sell after an increase in value. Again you need to consider the selling of the property before you purchase:- whats happening in the local area (schools, jobs, new properties etc), whether the house is comparable to neighbouring properties etc. in order to make the most of it.
Get a good tenant and then manage the property yourself. Full management charges will otherwise make your property unviable as an investment. Unless you're very unlucky with your property a good tenant will not be a big cause of grief and you'll rarely hear from them.
Having a decent & clean house will also help when you come to sell after an increase in value. Again you need to consider the selling of the property before you purchase:- whats happening in the local area (schools, jobs, new properties etc), whether the house is comparable to neighbouring properties etc. in order to make the most of it.
The house next door to me has been on the rental market, empty, for 6 months (4 bed detached near rtain station to London). I've heard the rental market is saturating and with the higher interest rates, returns are about 1%pa.
If you like travel, what about some of those tatty barns in France, Spain etc that Brits seem to like buying? I think in Romania you can get a house for £4 - heck, buy a whole town and dress up as Mayor!
If you like travel, what about some of those tatty barns in France, Spain etc that Brits seem to like buying? I think in Romania you can get a house for £4 - heck, buy a whole town and dress up as Mayor!
Hi.
I own 8 flats in Sussex that are let 99% of the time. e.g. tenant moved out on 04/04/04, new one in on Good Friday 9th. Apart from Location,L,L do loads of research. Are there other properties similar to yours being easily let. Value for £££, as a rule of thumb monthly rent should = 0.5% of purchase price. Two bed flats are best bet. One bed too small. Three bed means kids. Houses = garden = pain. Everyone says that BtL market is saturated, but there are still loads of people renting, and now that 1st time buyers cannot afford to buy, they rent. I work F/T but managing 8 flats takes about 1 weekend/flat/year, as most tenants seem to last about 1 year and they let so easily, they are taken straight away. Usually the 1st weekend after advertising. I can let you have a tenancy agreement. www.emeraldquay.co.uk
I own 8 flats in Sussex that are let 99% of the time. e.g. tenant moved out on 04/04/04, new one in on Good Friday 9th. Apart from Location,L,L do loads of research. Are there other properties similar to yours being easily let. Value for £££, as a rule of thumb monthly rent should = 0.5% of purchase price. Two bed flats are best bet. One bed too small. Three bed means kids. Houses = garden = pain. Everyone says that BtL market is saturated, but there are still loads of people renting, and now that 1st time buyers cannot afford to buy, they rent. I work F/T but managing 8 flats takes about 1 weekend/flat/year, as most tenants seem to last about 1 year and they let so easily, they are taken straight away. Usually the 1st weekend after advertising. I can let you have a tenancy agreement. www.emeraldquay.co.uk
Nice website from gerryh, seems good advice, like to use it myself, I have 3 small bedsits, all with Tenancy agreements, 2 are fantasic no aggro, 3rd is nightmare, no rent, paying solicitor to serve notice, so far cost me inexcess of £1200 lost rental, £750 to date on legal, await final account and hopefully rid of tennant 16th April ?!
Hopefully selling another property soon and may well buty another, subject to getting rid of this loser !
Hopefully selling another property soon and may well buty another, subject to getting rid of this loser !
If you want to make as much dosh as possible, ditch the letting agent. Ours take something silly like 15% and do 50 minutes work a year (i worked it out).
However, if you want them to just sit there and quietly bost your wallet with as little input as possible go with the management company route.
I've just realised this is all really obvious.
However, if you want them to just sit there and quietly bost your wallet with as little input as possible go with the management company route.
I've just realised this is all really obvious.
Leicester is saturated at the moment. I have a 1 bet flat in a good area, that I cannot find a tenant for. There is a new luxury convertion starting, one just finished close to me, and withing 0.5 mile of my house are about 10 'to let' signs that have been there for a good month plus.
There are also loads of old warehouse that have been recently converted
I would look to holiday lets in France, Spain or Portugal (need loads of research though, and a good agent).
The only other alternative is student property, through the university, but that brings its own problems.
Sparks
There are also loads of old warehouse that have been recently converted
I would look to holiday lets in France, Spain or Portugal (need loads of research though, and a good agent).
The only other alternative is student property, through the university, but that brings its own problems.
Sparks
use an agent to do the searches ie CCJ's and Credit scores, as well as the normal others checks. its not luck or having a nice property will give you a good tenants but active checking.
Ask to see the references, meet the tenants.
Search the areas, many areas are flooded with flats to let, choose wisely and you will do fine.
I wish i spent just 50min on each property I let each year, I could get rid of most of my staff.
Most agents will offer, find a tenant and paperwork and searches for a one off fee, rent collection for a % or full management for a %
make sure you have a gas safety cert and an electrical safety inspection.
Dont give the property to umpteen agents to let. Give it to just one or 2 max. Your not selling so you do care who moves in and you dont want to presurise the agent to accept any tom dick or harry. Go to an agent with a good reputation, ask in the estate agents who they would recommend. try and find a specialist letting agent not 'estate agent come slow time do a bit of letting on the side.'
Please be nice to some Letting agents, Im one and try my best and give a good service. 300+ Landlords cant be all wrong!
Ask to see the references, meet the tenants.
Search the areas, many areas are flooded with flats to let, choose wisely and you will do fine.
I wish i spent just 50min on each property I let each year, I could get rid of most of my staff.
Most agents will offer, find a tenant and paperwork and searches for a one off fee, rent collection for a % or full management for a %
make sure you have a gas safety cert and an electrical safety inspection.
Dont give the property to umpteen agents to let. Give it to just one or 2 max. Your not selling so you do care who moves in and you dont want to presurise the agent to accept any tom dick or harry. Go to an agent with a good reputation, ask in the estate agents who they would recommend. try and find a specialist letting agent not 'estate agent come slow time do a bit of letting on the side.'
Please be nice to some Letting agents, Im one and try my best and give a good service. 300+ Landlords cant be all wrong!
although some landlords really shoulnd be letting and they do get upset. As in any business put everthing in writing. or at least confirm in writing and tel calls. no ifs or buts. 6months 12 months down the line you will have written proof.
Dont get emotional to a property its a business. work on letting for 10 out of 12 months a year - hopefully it will be more.
dont mess with the IR.
Dont get emotional to a property its a business. work on letting for 10 out of 12 months a year - hopefully it will be more.
dont mess with the IR.
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