Tag Archive | tenants

4 Tips on How To Build a Buy-to-Let Property Portfolio

For some people, building up a buy-to-let property portfolio is their way of getting on the fast-track to success. But don’t be under any illusions that it is going to be easy. You will have to invest a great deal of time and money in making a success of things if you are planning to be an active investor.construction-process

Like any other kind of entrepreneurial enterprise, there will be a high degree of risk involved, but the rewards are there to be reaped if you manage to make a success of things. With this firmly in mind, let’s take a look at the most efficient ways of growing your property portfolio.

Start with a Single Good Investment

Getting off the ground is probably the most challenging part of building a property empire, so you need to make sure that your initial investment is a good one. The best advice that you can follow is to start small.

Even if you have the funds to invest in a more expensive property, you will learn a lot of lessons from your first place, so it makes sense that you don’t break the bank. Working with a firm like reo properties can set you off down the right path. It is a good idea to start local so you are able to easily reach your property whenever you choose.

Buy at the Right Time and Price

On a daily basis, residential properties are being sold for less than their market value. You need to make sure that your investment fits in nicely with this criteria. Be bold with you offers. As the old saying goes, if you don’t ask, you don’t get.

Try to choose the right time of year to make your investment as the property market goes through cycles. The boom times tend to be in a couple of months leading up to summer and those leading up to Christmas. Avoid these times and you will put yourself in a better position to strike a good deal.

Make Sure to Do Plenty of Research

It may seem crazy, but there are still plenty of first-time investors who head along to an auction, get a sudden rush of blood to the head and buy a property without having done adequate research. Though some will have success, your chances are much smaller if you don’t know what you are getting yourself into.

Think about how much work will need to do to the property and calculate what sort of investment you will need to put in. Analyze the area and who are likely to be your renters. You will put yourself in a much better position if you have done the appropriate research.

Treat Your Tenants Right

You need to make sure your tenants are happy and their experience of renting a property from you is a positive one. Deal with their concerns and any issues that may arise around the property as quickly as possible. Develop this good reputation at the rewards are there to be reaped.

Rental Investments: Things to Consider Before Renting out Your Property

So perhaps you’ve come into possession of a property. Maybe you’re moving out or thinking of switching homes, but you’re not sure what to do with your old home. The most obvious option would be to just sell it, especially if there’s still a mortgage on it.

You might even be able to make a small profit if you’ve had the home for a while and property prices have risen in your area. But have you considered the option of renting it out?

Renting your property comes with a unique set of challenges, but it’s also quite a profitable real estate investment and even if you have a mortgage on the property, you might be able to continue paying it off or at least get some money to help you pay it off by renting it out.

However, it’s important to let your mortgage lender know because buy-to-let mortgages are different to standard ones. If you’ve ever thought about renting your property, take a look at some of these pointers before you make a decision.

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Landlord responsibilities

If you rent out a property you’re considered a landlord. You have a lot of responsibilities when it comes to your property, such as making sure it’s free from health and safety hazards, carrying out the relevant gas safety checks and also checking if your tenants are legally allowed to rent properties in your country.

You’ll also need to book health and safety inspections to confirm that your property is safe to live in, and any problems that the inspector finds has to be fixed before you’re allowed to rent it out. This can include dodgy structural damage, uneven stairs or cracks in the walls.

If your tenants report a repair or a broken appliance that’s part of your property, then it’s your responsibility to make sure the relevant works are carried out and paid for. You’re responsible for most, if not all the repairs and it will come out of your own pocket, so make sure the tenants you rent the property to are capable of keeping it in good condition if you don’t want to be refurbishing it once their contract expires.

Finding tenants

There are rental property management services you can hire to hold onto and advertise your property to potential clients. They’ll usually charge a fixed fee or a percentage of what you make, but it makes sense to leave it to the experts to manage your property if you’re not too sure how to do it.

You can use the internet to reach the masses if you want to advertise your property on your own. You can use directories such as craigslist or websites dedicated to properties. Many websites will offer you a free listing opportunity so you don’t need to pay for your first time. You could also use social media and connect with local property rental services or speak directly to potential tenants.

A more traditional option is to advertise in printed media such as magazines, publications and of course, posting adverts in local store windows that allow for it.