Furnishing your buy to let property. A good idea?
It is expected at the moment buy-to-let properties to be offered unfurnished, aka “part furnished”, as buy-to-let properties virtually always include white goods, attractive bathroom, curtains and carpets. This trend does not apply to central London where furnished buy-to-let properties are more likely to let because of the large proportion of business tenants in the area.
For property landlords, this makes life a lot easier. All that is required to prepare a property for new tenants is in most cases a bit of painting and carpeting work. When it comes to choose carpets, paint colours and curtains for a buy-to-let property, make sure that you choose a neutral style to give new tenants the ability to personalise the property with their own furniture.
This simplifies things for investors when it comes to comply with safety regulations. A furnished property will typically include cushions, pillows and mattresses . Because these items come with the property, the landlord is responsible for ensuring that they fully comply with the various safety regulations.
It is important to notice that in all cases the landlord is responsible for the safety of gas and electrical installations as well as appliances supplied with the property. The landlord should organise annual check and keep proper records. Common sense dictates that rental properties, like any property, should have smoke alarms and carbon monoxide detectorsfitted.
These safety regulations are usually quite complex and updated regularly. Professional letting agents are usually well prepared to understand and ensure compliance with these safety regulations. Most of the time compliance is easy to reach, but for a new property investor this is something they must become at ease with from the moment they go ahead and let a property.
For property landlords, this makes life a lot easier. All that is required to prepare a property for new tenants is in most cases a bit of painting and carpeting work. When it comes to choose carpets, paint colours and curtains for a buy-to-let property, make sure that you choose a neutral style to give new tenants the ability to personalise the property with their own furniture.
This simplifies things for investors when it comes to comply with safety regulations. A furnished property will typically include cushions, pillows and mattresses . Because these items come with the property, the landlord is responsible for ensuring that they fully comply with the various safety regulations.
It is important to notice that in all cases the landlord is responsible for the safety of gas and electrical installations as well as appliances supplied with the property. The landlord should organise annual check and keep proper records. Common sense dictates that rental properties, like any property, should have smoke alarms and carbon monoxide detectorsfitted.
These safety regulations are usually quite complex and updated regularly. Professional letting agents are usually well prepared to understand and ensure compliance with these safety regulations. Most of the time compliance is easy to reach, but for a new property investor this is something they must become at ease with from the moment they go ahead and let a property.
Buy to let mortgage: some points to keep in mind
1. Don’t think too big too soon
You sometimes read success stories of investors who have managed to make a huge profit and build a large portfolios of properties. These days are gone, so invest for income rather than short term profit.
Your buy to let returns should come from the rent of your property. As most buy to let mortgages are interest only, the amount of your loan will not be repaid. Make sure that your rent covers more than your repayment so that you can build up a fund to deal with emergencies.
Once you have covered all your costs, tax, and mortgage repayments, the money left can be used as a deposit for other buy to let properties, or maybe pay off the mortgage at the end of the term.
2. Do not limit yourself to your local area
Buy to let landlords typically invest in properties in their local area. Bear in mind that your town may not be the best place to invest. The advantage of a local buy to let property is that you can manage it yourself, but don’t forget that you can use the services of an agent to do that for you in you decide to invest further away from your area.
Is there a town near you that has got commuting links, or an university? This might be a better option for your buy to let investment.
3. Negotiate
Buy to let investors have got a major advantage compared to next-time buyers: they are not part of a chain, so do not rely on having to sell a property to buy another.
4. Know the risks
Investing in a buy to let property is not with risks. House prices have been falling in the recent months, is this something you have considered? Properties can remain without a tenant for some time. Many buy to let landlord do their planning assuming that the property will sit empty 2 months per year. What about repairs or accidental damage? Do you have money in the bank to cover the price of a new boiler? Be ready for all eventualities. And document yourself. Check out buy-to-let mortgages articles and buy to let mortgages advice sites.
5. Understand how much you would like to be involved
Buying a new property is just a start. In order to rent out a property, somebody has to organise the advertising, the viewings, and when the new tenants are in, be able to deal with repairs. If it’s something you are willing to do yourself, you can use the services of an agent that will do that for you. It is worth contacting several agents to compare what is on offer.
You sometimes read success stories of investors who have managed to make a huge profit and build a large portfolios of properties. These days are gone, so invest for income rather than short term profit.
Your buy to let returns should come from the rent of your property. As most buy to let mortgages are interest only, the amount of your loan will not be repaid. Make sure that your rent covers more than your repayment so that you can build up a fund to deal with emergencies.
Once you have covered all your costs, tax, and mortgage repayments, the money left can be used as a deposit for other buy to let properties, or maybe pay off the mortgage at the end of the term.
2. Do not limit yourself to your local area
Buy to let landlords typically invest in properties in their local area. Bear in mind that your town may not be the best place to invest. The advantage of a local buy to let property is that you can manage it yourself, but don’t forget that you can use the services of an agent to do that for you in you decide to invest further away from your area.
Is there a town near you that has got commuting links, or an university? This might be a better option for your buy to let investment.
3. Negotiate
Buy to let investors have got a major advantage compared to next-time buyers: they are not part of a chain, so do not rely on having to sell a property to buy another.
4. Know the risks
Investing in a buy to let property is not with risks. House prices have been falling in the recent months, is this something you have considered? Properties can remain without a tenant for some time. Many buy to let landlord do their planning assuming that the property will sit empty 2 months per year. What about repairs or accidental damage? Do you have money in the bank to cover the price of a new boiler? Be ready for all eventualities. And document yourself. Check out buy-to-let mortgages articles and buy to let mortgages advice sites.
5. Understand how much you would like to be involved
Buying a new property is just a start. In order to rent out a property, somebody has to organise the advertising, the viewings, and when the new tenants are in, be able to deal with repairs. If it’s something you are willing to do yourself, you can use the services of an agent that will do that for you. It is worth contacting several agents to compare what is on offer.
