If you're thinking about becoming a landlord, there’s a lot of things to think about and understand before you buy a property.
The process of purchasing a buy-to-let home differs from purchasing a residential property for yourself, so it's important to know what to expect.
Because our staff specialise in buy-to-let guidance, we've created a simple guide to buying a buy-to-let property.
What is a buy-to-let?
First and foremost, the fundamentals: A buy-to-let property is one that has been purchased with the idea of renting it out.
A buy-to-let mortgage is different from a residential mortgage, and you'll need to apply for one if you can't afford to buy the house outright.
When applying for a regular mortgage, your income is considered, however when applying for a buy-to-let loan, the lender considers the anticipated rental income as your major source of income, while your personal income is considered secondary.
What type of property should you buy?
The location of the property in relation to facilities and transportation, as well as the neighbourhood and demand in the area, are all key considerations.
Just like you would when looking for a home, you should conduct thorough research into the area where you want your buy-to-let property to be placed.
Consider the type of tenant you want to attract and include that into your research.
Finding a property in the suburbs near decent schools is your best choice if you're wanting to rent to families.
A home near a university, as well as good yet inexpensive restaurants and nightlife, is essential if you want to rent to students.
Is it necessary to use a letting agent?
This answer is contingent on your financial situation and the level of engagement you want in your buy-to-let property.
You may not want to go via a letting agent or agency if you want to be a very hands-on landlord, but if you want to be more hands-off, it is a good idea to seek the services of a professional, experienced lettings firm.
Credit checks on possible tenants, drafting a lease contract, chasing late rental payments for you, assisting with any on-site maintenance, and assisting with obligatory gas and energy safety and efficiency assessments are all services provided by letting agents like us.
In general, if you're a budding landlord, using our lettings services will relieve you of a significant amount of stress!
Contact our team of experts for specialist guidance on buying a buy-to-let property.
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