In these times of recession, more and more people are opting for rented accommodation. Going by the trend, it is an ideal time to buy a property to rent out later. However, purchasing a property with the intention to let it out is certainly not an easy proposition. It is associated with countless of unforeseen hassles that may ultimately cause to you to lose all your hard-earned money. Here are some useful tips that will help you to achieve success in the highly unpredictable buy-to-rent marketplace.
Be sure to conduct in-depth research
In such tough economic times, hundreds of properties are available at a very reasonable price. However, before opting for any one of them, it is essential to conduct in-depth research to become familiar with all aspects of buy-to-rent process and property.
You can begin your research from the internet, where innumerable pages of information are available for buy-to-let investors.Seminars, exhibitions, real-estate events and TV programs are other good resources of information. You can also consult a real-estate expert.
Prepare a comprehensive budget
Generally, buy-to-rent properties are associated with numerous expenses like renovation, interior decoration, repair, home inspection, and so forth. Hence, it is essential to prepare an expansive budget that would include all the costs. This kind of budget would not only impose restrictions on over-spending, but will also help you to search for areas where you can cut costs.
Look all around for suitable buy-to-let properties
There are several things that you should take into account while searching for buy-to-rent properties.
In general, the accommodation shouldn't be in a secluded and isolated location. Markets, malls, hotels, restaurants, multiplexes, et al should be in close vicinity. Furthermore, crèches, nurseries and schools should also be near by. The best policy would be to put yourself in the tenant's shoes before setting out the buy a property.
Shop around and negotiate the price
Remember, with respect to buy-to-rent properties, lots of options are available. For this reason, it is important to shop around. Internet and classifieds can help you in this aspect. If you don't have time to spare, then you can also take the help of buy-to-let brokers. Carefully consider all the options and don't forget to negotiate the price.
Take into account the pros and cons of buy-to-rent
Buy-to-let has its own set of pitfalls; for instance, the rentals are directly proportional to the economy. If the economy strengthens, the rentals are bound to fall. This pattern can affect you adversely. Likewise, if you are unable to find a good tenant, your property may remain vacant for sometime. Moreover, buy-to-rent properties do not generate instant results. In simple words, you cannot recover all the expenses in one go from your property. You should take into consideration all these factors as well as prepare yourself for the hard times before jumping into the buy-to-let bandwagon.
Once, you have bought a good buy-to-rent property. Advertise in appropriate places or hire a broker and get a suitable tenant for your accommodation. Be sure to maintain good relationship with your tenant, after all he is the one who will be using your property.