Top Tips for Buy-to-Let Investors

The buy-to-let market for property in the UK is worth billions of pounds, and a recent estimate showed that in the first quarter of 2022, there were £8.5 billion worth of buy-to-let properties that were purchased by landlords. Many investors seek to enter the buy-to-let property business as it can offer substantial sums of regular income whilst also possessing an asset in the form of property that will, generally,appreciate over time. Many investors are seeking to purchase property as part of a wider investment portfolio as there tends to be less uncertainty in the housing market when compared to conventional stocks and shares. If you are planning to enter the buy-to-let property market as an investor, it is important to consider some key strategies that will ensure you make wise investment decisions. This article describes three top tips for buy-to-let investors that will help to cultivate significant income streams whilst owning property that is likely to appreciate over time.

Seek Specialist Advice

It is vitally important that potential investors in the property market seek specialist advice before committing considerable sums of money to the venture. There is a wide range of factors to consider when purchasing a property to let. A mortgage may be required in the first instance and it can be beneficial to seek a Mortgage Broker Guide from a professional in the field, such as Respect Mortgages, to ensure that you have access to the complete mortgage provider market. Property investment professionals will also be able to help you calculate expected earnings from a building and how these will be offset by any property maintenance or mortgage costs. This can be of great benefit when forming a thorough estimation of the profitability of a property purchase for rental purposes.

Location Is Key

The location of a property often is one of the key reasons that potential tenants will use to decide whether they wish to rent it. Many property professionals regard the location of the building as one of the most important factors in any purchase-to-rent decision. This is because a property that is close to amenities, such as shops and public areas, is a more attractive proposition to tenants and homeowners in general. In addition, it is incredibly important to buy a property in an area that is experiencing growth, rather than decline, as this will affect the overall value of the property and, therefore, how much rent can be charged.

Consider Your Ideal Tenant

As a final point, it is extremely beneficial to see a property from the perspective of your ideal tenant when purchasing property to rent. For example, a small, terraced building or an apartment may be ideal for students to rent. It does not need to be particularly well appointed but should be close to public transport links or ideally within walking distance of a university or college campus. Students will typically seek to pay less when renting, so the price will be a key factor in their decision. Families who are looking to rent property will typically need a larger space and will view good road links and access to public park areas and nearby schools as key plus points. In short, try to think of whether your intended property purchase will serve the needs of the intended tenants before committing to buy.