We all want to be earning a high income so we can afford the finer things in life, or at least a better life than the one we are currently living. Some of us are more business-minded than others and find running their own business or even a few comes easy. There are some areas that don’t take as much effort yet can bring in a steady income alongside a regular job.
You see programmes on tv of people buying and selling properties for profit around their jobs. It’s been very popular for years as is buying properties to rent out/let. Rather than a lump sum return, you get a steady amount paid monthly whilst you own and rent out the property. These grow in value whilst you own them so increase the profit you’ll make from each property.
If this is something that you’d love to do then here are a few things you’ll need to do.
Buy-To-Let Getting Started
Write Up A Plan
As with any business you’ll need to write up a plan. You’ll need to make sure you’ve got everything covered and it helps as a guide for once you get started to keep you on track. It is also essential if you plan on finding others to invest in the business. No one with any common sense will throw money at a business that hasn’t been thought through properly.
Do Your Maths
It’s important to make sure the business is financially viable. This will be dictated by a range of factors most importantly, do you have the finances to invest in a property to start with? Alternatively, how much would you need someone to invest and how much would they get as a return and would you still get an adequate amount? To be able to do this, you’ll need to find;
The Perfect Property
It’s important to find the right house/flat when looking for a buy-to-let property.
Key things to look for include:
A place situated near public transport.
Situated in a good area.
Somewhere with as many rooms as you can afford.
A property with as much or little renovation work as you can handle.
Start by looking at some property finder websites and draw up a shortlist of the best places. Next, go see them in person. You can’t get a good feel of a place without actually going to see it. Pictures can be very deceptive in regards to room sizes and the state the property is in.
Renovate
What you need to do will naturally be dependent on the state of the property on purchase. Some places just need a lick of paint and they’re ready for you to start showing them. Others will need a bit more TLC. You will, of course, have budgeted for this prior to putting in an offer to make sure this fits within your budget. Be careful to stick to modern, stylish decor. Tiles can be a gorgeous addition to any home and can make it far more desirable. The most important thing to consider is your target audience when you redecorate. Sticking to neutral tones will normally suit most tastes. They can always add a splash of colour with throws, cushions, pictures, etc.
Advertise Adequately
To create interest in your beautifully refurbished home you’ll need to make sure you advertise. You can do this via an estate agent quite easily. This can be a popular option for those with limited time. Be aware they won’t always get the best people in – we discovered this the hard way. If you can set up the advertising yourself and screen the prospective tennants then you can be more selective of those that will be living in and caring for your property.
Buying a property to let can be a great way to subsidise your income and help you afford far more luxuries. Once you have one property in your portfolio you’ll discover first hand what the best approach to this can be and gain the confidence to add more properties to your property empire.
What tips would you suggest to those looking to buy a property to let?
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I totally agree with your tips Melanie. Having a property well connected by public transport with basic necessities like hospitals, schools and markets nearby makes it a sure thing that it will give good returns when we sell them or let them.
That’s very true although you’re best to kee hold of the good ones and enjoy the additional income.
I agree that it’s important to buy a rental property that is located near public transportation. A lot of renters don’t have vehicles.
It makes travelling to and from work and other places so much easier.
Definitely a great investment to have investment property as property always appreciates. You’ll always have residual income.
It’s a great way to increase your income if you are able to invest in this way.
This would be a good business for people who have the means to buy property. It is indeed a great investment! I agree with screening the tenants to ensure that they care for your property as if it was their own.
Screening is vital. We’ve had some lovely tenants as we are very careful who we allow to stay in our properties.
Those,are some really helpful suggestions. Its really important to plan things in advance. Your post will help many people.
Thanks Khushboo. I hope so. It’s not easy to set up a business and can go horribly wrong when not properly planned out.
Nice tips.. I have been into property for a while but the truth is that things are not really going that great with the business, i guess i should re-evaluate and apply some of your method.
It can take time to learn how to do things so it works out. I hope you can turn it around Ewuzie.
I enjoyed reading your post. I definitely agree that whatever we want to achieve in life, we have to write a plan.
I find planning most things really works to our advantage especially in business.
This is a great blog! Writing plans are very important to do! Actually, all you’ve said are very important. And I am so glad to know these. Thanks!
No problem Gladys. It helps to be on top of everything. I find the more organised you are the smoother things go.
Those are truly practical tips and great mind setting in acquiring a good investment and property. Thanks for sharing these wonderful thoughts.
Thanks Liz. We’ve had a fair bit of experience in this area. Glad you enjoyed the post x