Few investments have been as appealing in recent years as property. Putting your money into bricks and mortar can mean owning a second or third home, maybe even more, while letting someone else pay. This quickly adds up to a nice nest egg or pension plan if done properly.
Making sure you invest in the right type of property for the right area at the right price is important if you want to keep your tenants staying for the long term. Here are some tips to help you out.
Understanding Buy To Let
Some property investors want to buy a place, do it up and sell it on swiftly while making a tidy profit. But the long game brings greater advantages if you are willing to be patient.
Instead of looking for that quick buck, renting out your investment allows your tenants to cover the cost of your mortgage, leaving you with a property you own outright when that final payment has been made. This could be the difference between a few thousand or a few hundred thousand pounds.
Buy to let mortgages work similarly to homeowner mortgages, although there are certain differences that need to be recognised before you take the plunge.
Fees, interest rates and minimum deposits tend to be higher on additional homes, so it’s important to budget these in when working out whether your outgoings and incomings will balance.
Location, Location, Location
While location is important for choosing the house of your dreams, it is also a must when looking for an investment property.
If you attempt to rent out a flat above a nightclub or a house next to a railway line, you won’t have many takers due to the noise problems at unappealing hours. And those tenants that do give it a go probably won’t stay too long.
The age of the property is also a consideration. Are you buying an older property that may need regular attention? Issues such as damp and woodworm will bring additional costs and disgruntled tenants. Listed properties often include caveats about satellite dishes and double glazing, which may not appeal to all.
And what about parking? If you want a tenant to make your place their home then it may be the little things which keep them there.
But just as important is understanding the rental prices of the area you are buying a piece of. Is the area on the up, well populated and seeing a rise in rental prices? If so then you are more likely to be able to get tenants in and keep them there.
Are you buying property in a student area? If so it is more likely you will get interest from younger people looking for somewhere to stay for a year or two with friends rather than a family looking to lay down some roots.
How To Market Your Property
If you have the time, patience and know how to deal with your property first hand then you can expect a better rate of return.
Experts are, however, at hand to help out. Every town or city has its fair share of letting agents willing to manage your property for a hefty fee. But if you want the world to see your place is up for rent, while making sure you the tenants you choose are exactly the right people for you then look no further than badi.
Badi is an easy, efficient way of putting people who are looking to rent with those who have properties at the right place and in the perfect location.
Whether you need a tenant for your empty flat or a room of your own, badi’s features and filters make it an impressively easy process.