In article ,
TheScullster scribeth thus
Hi all
From posts to the group in the past, it is clear that a number of posters
own property for rental.
Is the market saturated after all the buy-to-let hype of recent years?
Is it a worthwhile investment if starting now(ish).
I am likely to be in a position to take on a property (finances permitting)
this year and wonder if this would be a good move in the current climate.
The property is 3 bed semi in decent area - I am guessing at purchase price
of around £150k and rental £500 pcm possibly more.
Only very tentative interest ATM - not sure I could live with the hassle!
If my figures are right on the rental income, what costs should I expect to
pay out of the £6000 pa income?
Thanks
Phil
In response to this an other posts...
Research your market thoroughly and I mean that!.
We've got a small rental portfolio but in a thriving Uni city where
three bed ex council house is now around 240 K odd;!..
Vet your tenants first, go on your own instincts. Do check references
they should have them unless there're coming from abroad when perhaps
they won't but we've never had problems with overseas renters except the
little Japanese lady who insisted I wear slippers to go into the
bathroom. I said I would if she could find any size 14's;!..
If no references from their pervious landlord then be very very wary.
Try to find out why there leaving and if it seems a bit odd ask if you
can have the existing landlords number..
Get a proper Shorthold Tenancy agreement these run for 6 months and can
be extended if they want to stay and you want them there.
Take at last One months deposit and thats lodged with the Deposit
protection service. This is for damages and them not paying the rent etc
and cleaning if they do mess it up.
https://www.depositprotection.com/he...agent-landlord
Have it all in a written agreement and make -sure- they understand it..
Have a look at some sites such as,
www.landlordtoday.co.uk
Take pictures of ALL the rooms and give them copies on a CD ROM then any
disputes should be easier to solve.
Check the property often if you have any suspicions of them. Check they
pay the rental on time and chase them if its a few days late. Its to
keep them good
.. Sometimes we have had them late but if there is a
good reason then its usually OK..
As to the agreement make sure it has clauses of what there supposed to
do like the garden etc and if they want to decorate it differently make
sure they ask first and its to be done to a "workmanlike" standard.
Pets?, mostly no but if they look like good tenets otherwise then a cat
or small dog if it can be accommodated and its not likely to cause you a
problem then allow it as most all others won't so you might be in a
better position. We've allowed a cat and a small jack Russell type dog
and they've been no problem.
No do bear in mind that this is LONG TERM stuff you don't make a killing
overnight its a long haul process and its best for you in a generally
rising market so your .. location as usual, is important.
Can you do better elsewhere with your money?. Difficult that some say
you can clear 4 or 5 % I'd like to know where and how safe and what
building society that is;!..
And if your renting a BS will usually charge you a higher rate so if you
need to raise a few quid do it on your existing house you'll get a
better rate..
Check with an accountant if you have one if not get an hours advice on
what's allowable and what's not against Tax etc..
And finally don't bother with an agent unless its a very long way away.
You can do just as well yourself and sometimes people prefer dealing
direct with the landlord.
You'll be on call 24/7 for any problems so if your not around make sure
theres a friendly handyman, Gasman you'll need one for boiler
inspections, electrician etc otherwise its all DIY if possible..
And best of luck, its been good for us but as others will say its all
long term .......
--
Tony Sayer