The rental market is a booming business venture in the UK. If you are looking to take the plunge and become a landlord for the first time, there are some qualities you should look for when purchasing the property.
Location Location Location…No we aren’t talking about the TV show, but they are right, it counts for a LOT. Not only does the right location determine how much you can render a month in profits, it also has a huge influence on the types of tenants you are likely to attract and more over, how often you will be facing a vacant property.
Then there’s good old Mr Tax Man. He’s never been anyone’s best friend but unfortunately he’s unavoidable. Property taxes are not standardised. This means you’ll need to do your homework. Yes you might find a beautiful property in a great location, sure to be hot property on the rental market. But if the tax bill is too high this could counteract your efforts entirely! No one wants to pay excessive amounts in tax if they don’t need to. Before buying, make sure you check your potential investment’s tax band here! https://www.gov.uk/council-tax-bands
Next up, you’ll need to check the average rental income for the area. If the average rent won’t cover your mortgage payments, taxes and expenses then the property your thought was perfect might not be so great after all. However some areas are on the developing side of life, so it might be worth the gamble. You should research where the area is likely to stand in 5 years time and invest your money wisely.
Finally don’t forget to look at how the area might fair for your tenant. Ask yourself these basic questions. Are there…good schools, low crime rates, a thriving job market, great amenities and is there planning permission for development over the coming months and years. If so you may have just hit the jack pot!
Top Tip: You can never do too much research! Our sales and letting consultants will be able to advise you from today! Chat to one of our team now: https://www.mansons.net