Here is the second part of our article on how you can turn your buy-to-let investment into a success.
6. Don’t Be Greedy
In the late ‘90s and early 2000s, many investors saw their properties soar in value in a matter of months due to the financial boom. This is simply not the case these days, and those in the know understand you should treat your buy-to-let property as a steady source of income rather than expecting dramatic profits.
7. Widen Your Net
If you can’t find any suitable properties in your immediate area, consider looking at other parts of the country, or even overseas. You’ll need an agent to oversee your property for you if it’s located a long way away, but it’s always a good idea to delegate to a professional anyway, especially if you are new to letting.
8. Decide What Kind of Landlord You Want to Be
If you are happy dealing with people and have plenty of time to spare for managing your property, you can potentially save on the cost of using a property management company. However, this can be an issue if you lack experience, and you might prefer to use a property professional, at least when you first start out. Using a good Property Management CRM such as the Property Management CRM at Property Deck can be a great help, however.
9. Make an Offer
As you are not part of a chain, you might find you will be able to get away with offering less than the asking price. Prospective buyers who are part of a chain are a bigger risk to the vendor, as there are so many things that can go wrong with lots of parties involved. The Money Advice Service explains how much you can typically borrow with a buy-to-let mortgage: https://www.moneyadviceservice.org.uk/en/articles/buy-to-let-mortgages#how-much-you-can-you-borrow-for-buy-to-let-mortgages.
10. Be Prepared for Stress
There can be a lot of stress involved in buy-to-lets, and while you shouldn’t let this put you off, you should be aware of the pitfalls before you get started. You might face a nervy wait for tenants to sign up, or you might find your property requires more upkeep than you expected. Doing your research can help minimise the number of problems you face, but there will always be stressful times in this business.