B E R ES FO R D S M A G A Z I N E
BUY TO LET
SHOULD I INVEST IN BUY-TO-LET? Owning a second home and renting it out to a tenant can be a very efficient and flexible way to invest your savings. Once you’ve bought your second home, you can cover the mortgage payments through the rental income and there’s also every chance the property will appreciate in its capital value too while you own it. Here are five steps to becoming a landlord.
1: FIND SOME FINANCIAL ADVICE ...to learn how much money you can and should be investing, and shop around for the best possible mortgage deal to maximise the return on your investment.
2: GO HOUSE-HUNTING Often the chains are shorter, or non-existent, on a property bought to rent out, but while the process may be quicker, still expect it to take a few months to find the right place and make it yours.
3: GET INSURED You will need buildings insurance and it’s wise to get cover against unexpected costs like damage and loss of rent.
4: SEARCH FOR THE RIGHT TENANT This can be done privately, but it’s best to trust the professionals who will vet prospective tenants and help you get the legal protection in place to give you peace of mind.
5: KEEP A WATCHING BRIEF It’s sensible to maintain communication with your tenant to stay on top of any issues and you should also review your mortgage, the market value to rent your property and your tax situation to make sure your money is working as hard as it can for you every step of the way.
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