Monday, December 28, 2009
Buy to Let Tips and Advice from Letting Focus and David Lawrenson
1. Buy into the right location. Look at areas that are getting or have just got faster transport links such as Folkestone in Kent or regeneration money such as Elephant & Castle in London. Also, look for areas where new employers are moving in or existing employers are hiring workers. There is lots of information on all this on the Internet and the publication Estates Gazzette, available in most libraries, has lots of news on planned regeneration. Do your research.
2. Use today’s weak market to make “hard ball” offers at below the asking price. If the vendor won’t play, simply walk away and make a cheeky offer somewhere else.
3. Buy the type of property that is in demand from tenants and for which there will be a strong resale market when you eventually come to sell. Ask letting agents for their view of what type of house is in demand locally.
4. Read up and understand your legal responsibilities as a landlord. Get my book – still the UK’s top selling property title.
5. Try to build up a deposit of at least 25 per cent to allow you access to the best mortgage rates.
6. Carefully check all prospective tenants’ references to avoid the “tenant from hell”. If your agent does this for you ask to see the references they obtained. Don’t fully trust to an agent until you have worked with them for a while and they have aerend that trust.
7. Treat tenants as you would like to be treated.
8. Keep all receipts and invoices and have a good administration system.
9. Have a sense of humour. You’ll need it from time to time.
10. If you need advice, make sure it is independent advice and not provided by someone also looking to sell a property or finance package to you.
Happy New Year to all you LettingFocus.com blog readers.
MORE ABOUT LETTINGFOCUS AND WHAT WE DO
LettingFocus.com is the home of landlord information.
Hi, I’m David Lawrenson.
I have been a landlord and property investor myself for over 25 years and am author of “Successful Property Letting” – which has been the UK’s top selling property and buy to let book for the last 3 years.
At LettingFocus.com, we help landlords and property investors make money in property by coaching them in ways that work, which are ethical and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one to one mentoring / coaching basis or through our occasional group seminars.
Unfortunately, in the UK today, property advice in the UK is still largely unregulated and what counts as “good advice” is too often more about making the promoter money than giving useful information to the investor.
With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.
At a corporate level, we also provide consultancy for banks, local authorities and social housing providers – helping them with their landlord facing or buy to let product strategies. We also write for property websites and are regularly quoted by the media.
We have written articles for numerous publications including The Independent, The Telegraph and quality landlord websites.
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