Embarking on the journey to becoming a landlord is an exciting yet challenging venture. To help you navigate this process successfully, here are some essential tips from Key To Mortgages, your trusted Bournemouth mortgage broker. Whether you’re in Bournemouth, Christchurch, or Poole, these tips will guide you through the key considerations of buy-to-let investment.
Is Buy-to-Let Right for Me?
Before taking the leap, consider all the factors surrounding buy-to-let and becoming a landlord. Ask yourself:
How will you maintain mortgage repayments if the property remains vacant for an extended period?
Can your income support both your personal mortgage and the buy-to-let mortgage?
What are the purchase and ongoing costs of owning and maintaining a buy-to-let property?
We suggest speaking to an experienced landlord to get a realistic view of the positives and negatives. Additionally, consult with us, your friendly and recommended Bournemouth mortgage broker, for expert advice.
Consider Your Target Market
When choosing a property, view it through the eyes of a tenant. Different target markets have different preferences:
Students: Look for properties close to universities, public transport links, and main bus routes. They typically prefer low-maintenance properties near town centers.
Families: Consider proximity to nurseries, school catchment areas, open spaces, and local amenities. Features like off-road parking and garden space are often important.
Professionals: Professionals generally seek properties with good transport links, modern amenities, and proximity to business districts or city centres. High-speed internet and nearby leisure facilities are also attractive features.
Your local letting agent can provide insights into the area if you’re not familiar with it. As a Bournemouth mortgage broker, I can share valuable information about Bournemouth and the surrounding areas.
Consider How Hands-On You Want to Be
Decide how involved you want to be in managing your property. There are several management options:
- Full Management
- Part Management
- Tenant Find Only
- Self-Management
Choosing the right letting agent is crucial for the smooth operation of your rental property. Compare services and costs to find the best fit for your needs.
Budget for the Cost of Buying
Beyond saving for a deposit, budget for the various costs associated with buying a home, such as:
- Stamp Duty
- Solicitor’s Fees
- Mortgage Arrangement and Valuation Fees
- Survey Costs
- Buildings Insurance
- Tenant Find and Letting Costs
- Landlord’s Insurance
Proper budgeting will help you avoid financial surprises and ensure a smoother purchasing process.
Understand the Risks of Being a Landlord
Becoming a landlord comes with several risks that you need to be aware of and prepared for:
Void Periods: There may be times when your property is vacant, meaning no rental income. It’s crucial to have a financial buffer to cover mortgage payments and other expenses during these periods.
Problem Tenants: Dealing with tenants who pay late, damage property, or breach their lease can be stressful and costly. Proper tenant screening and having a clear tenancy agreement are essential.
Maintenance Costs: Unexpected repairs and ongoing maintenance can add up quickly. Budgeting for these expenses is crucial to avoid financial strain.
Regulatory Compliance: Landlords must comply with numerous regulations, including safety standards, tenancy laws, and tax obligations. Keeping up with these can be time-consuming and complex.
Market Fluctuations: Property values and rental demand can fluctuate, affecting your rental income and the value of your investment. It’s important to stay informed about the property market and be prepared for changes.
Legal Risks: Evicting tenants, dealing with disputes, and complying with housing laws can involve legal complexities. Having access to legal advice and understanding your rights and responsibilities as a landlord is important.
Expert Advice – Call Key To Mortgages Today
With so many mortgages available, it’s essential to consider various factors. At Key To Mortgages, we offer expert advice and take the time to understand what is important to you, your future plans, and how these affect your mortgage and financial needs. As a Bournemouth mortgage broker, we provide unbiased mortgage and protection advice and search for the best buy-to-let mortgage from the whole of the market.
By following these tips and seeking professional advice, you can make informed decisions and succeed in your journey as a landlord. Whether you’re based in Bournemouth, Christchurch, or Poole, contact Key To Mortgages today for personalised assistance and expert guidance.
Commercial and Buy to let mortgages are not usually regulated by the Financial Services Authority.
Your property may be repossessed if you do not keep up repayments on your mortgage
We offer a free initial mortgage consultation. There may be a fee for arranging your mortgage and the precise amount will depend on your circumstances. We typically charge a fee of £595.00.