I’ve heard a lot about buy-to-let property investment, but need to know more before I take the first step, what do I need to know?

If you’re trying to decide whether to invest in buy-to-let property, you might want to consider the following:

What market will you be entering?

1. Renting to people on benefits
2. Renting to students
3. Renting to working tenants
4. Renting to professionals & higher end market

Make sure that your property addresses the market it is supposed to serve.

Can you manage the property on your own?

If you know the responsibilities and best practices in managing properties, looking after your own property will save you the cost of an agent but will require more of your time.

Have you got the necessary permissions?

If you are thinking of letting property that has a normal residential mortgage, you will require permission from your mortgage lender. So check with them first.

Provide an Assured Shorthold Tenancy (AST) agreement that you and the tenant sign. This will outline the length of the tenancy, amount of rent, when it is to be paid and deposit details.

If you are thinking of letting property that has a normal residential mortgage, you will require permission from your mortgage lender. So check with them first.

Carry out full background checks on potential tenants to check they are in a position to meet their rental commitment.

Protect the tenant’s deposit with a government-authorised scheme, such as mydeposits.co.uk.

Create an inventory describing the condition of the property in detail, along with the furnishings.

Have gas appliances checked annually by a Gas Safe registered engineer and provide the tenant with a Gas Safety Certificate.

Take out comprehensive landlord insurance to protect your property.

Ensure urgent repairs are fixed promptly. Use reputable tradesmen that you know and can trust to tend to the property at short notice.

The key to survival in the property business is to maintain a healthy cash flow so make sure you understand what property investors call “the numbers”. You also need the right strategy to build your property portfolio gradually over the years and achieve financial freedom.

I have known a number of people whose lives have been significantly impaired by investing in property the wrong way. However properly organised a buy to let portfolio can significantly improve your quality of life and safeguard your future. Get in touch if you need advice on how it can be done.

Ray Best can help you protect your financial future. To find out more, simply click here!

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About Ray L Best

Ray Best has had over 30 years experience of advising on complex financial matters. A published author of a number of books including “Partnership and Shareholder Protection”, Inheritance Tax Simplified”. We provide an initial meeting at no cost and only engage with clients when we can add significant value.

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