There are many business ventures that guarantee profits. Pubs and clubs are always packed on match days and weekends. Hotels and other hospitality establishments provide temporary residence for tourists and locals. Most people prefer these kinds of investments, as these are quite common, with assistance in running it are found everywhere.
The buy-to-let industry is once again thriving. Thanks to economic recuperation, potential business owners have more money to invest and they’re opting for real estate opportunities. Success is long term, but as people are always looking for a place to stay, the income is constant. Moreover, almost every online estate agency in UK offers property management that assists in rent responsibilities.
For those planning to get on the buy-to-let industry, here are five practical tips to succeed in the enterprise:
1. Buy Something That is Not Too Old
Try to find properties that have not aged too much. Maintenance costs will be lower through time and potential customers will not be scared away due to the lack of “decrepit-ness”.
2. Buy a Property Where There is a High Rental Demand
With enough research, you can find areas with good rental yields. A house in a premium location commands a high rental free, but at £250,000, any owner is able to buy just one house. Down the road on smaller towns, there are two-bedroom houses worth £125,000. Two of those houses cost the same, but will produce £1,360 a month, £680 per house. Knowing where to buy pays better, literally.
3. Buy a “Lettable” Property
“Lettable” does not have to be posh or luxurious. A simple two-bedroom at a nice neighbourhood appeals to more potential tenants. These cost lower, as well, freeing up financial space to buy another property.
4. Use a Letting Agency
It is recommended to use a letting agency to look after properties. Moreover, one can negotiate for prices by going around city centres and playing them each other. Rest assured, they will do the grunt work of managing a property at a low cost.
5. Watch Out for Add-ons from Letting Agencies
Some agencies try to charge various fees that seem to be important, but useless and non-existent. Watch out for terms in the billing that does not mean anything; the “admin fee” is common and usually means nothing. A monthly rate should already include organisation of maintenance and repair.
Staking in the real estate business requires one to make calculated decisions. Hopefully, these tips will go a long way in making any potential owner’s life easier.