If you’re interested in becoming a landlord and investing in property to rent out, it’s important to understand the market as much as you can before taking the plunge. We’ve put together a list of top tips to help you be more prepared to start the process of buying a buy to let property

Research the market

Research the general buy to let market and judge whether it’s a good time to be making this kind of investment. What are property prices like, are they predicted to rise/fall in the coming months or years? What are mortgage rates like at the moment and how might they change that may impact your purchase?

Secondly, look at the best areas for rental opportunities as that may not be the area you’re based in. Although investing in somewhere in your own area means you can keep an eye on the place more easily, towns/cities with universities or with good commuting links are usually good places to focus your search.

Consider how hands-on of a landlord you’re going to be

After you’ve bought a property and rented it out, think about the potential support you want to provide for your tenants. Will you be managing their day to day relationship yourself, or will you employ a property management agency to take the pressure off you? An agency will charge a fee, so you’d need to make sure these are incorporated into your overall costs.

Remember costs and opt for income over empire.

Always put income first. Think about each property and its earning potential rather than amassing a huge property portfolio. Ask yourself – do I need to do any work to get the property into a suitable condition to rent out, how easily will I be able to get a tenant for this property, will the rent cover the cost of the mortgage and associated costs?

Haggle over price

As an investor you’re unlikely to be part of a chain, which makes you more attractive to the seller and puts you in prime position to negotiate a discount on the asking price. Investors are more likely to be in a position to complete a purchase more quickly and represent less of a risk to the sale falling through because of a break in the chain.

Shop around and get the best buy-to-let mortgage deal

As with residential mortgages there are many different buy to let mortgage deals on the market, so it’s important to find one that best suits your individual needs. Our expert mortgage advisers in Northwich have access to a panel of over 90 lenders which puts them in the best possible position to find the right product for you.

If you’d like to get in touch and make an appointment to receive some free initial mortgage advice, give us a call on 08009155409 or send us an e-mail.