A guide to become a landlord

Being a landlord is really easy if you can afford to buy to let another property. In this article we will learn the advantages of being a landlord and how to do it to get the maximum benefit.

The advantages of being a landlord

If you have a good property to let and an efficient managing agent, you work is practically done. Even if you are a landlord with several properties to let, the time you may dedicate to this will be quite limited while your earnings will be considerable.

Some landlords expand their number of properties by refinancing one of them that has risen in value. That way they get financing to purchase a new property. Now, you might be wondering: how do I start?

Research properties

First of all you should know what is more important for you: yield and growth. Yield is the difference between the rent and the costs, and the capital growth is the increase in value of your property over time.

So, if you choose a property in Birmingham city centre you can hope that prices will be rising, which is a common strategy for some, although the yield will be tiny. On the other hand, if you choose a property in the south of West Midlands it won’t offer you so much capital growth, but it will potentially give you large yield.

Ideally, you should look for a location that provides you with both yield and capital growth, as the latter is important to be able to increase your property portfolio. But, which locations can give you both? The right answer is commuter towns. They are always demanded by professionals, who are usually the best tenants.

Tips before purchasing a property

Usually, there is no much room for negotiation in the market, although if you find a great deal, go for it. Before buying a property, you need to be careful. It is easy to be seduced by the amazing return of investment that many estate agents in Birmingham promise when they try to sell you a brand new flat. Their figures tend to be at best optimistic and at worst unrealistic, just a lie.

What to do then? Don’t listen only to the developer or the estate agent. Speaking to different local estate agents and do some research online on websites such as Rightmove and Zoopla to check sale and rental prices.

Ask for legal advice

Lettings legislation changes very often. That is why it is so important to receive the right legal advice. Make sure that your estate agent belongs to ARLA, because as member they will have the necessary acumen to guide you through. Also, ARLA guarantee money protection for clients. If you follow these tips and buy wisely, you will be able to continue investing and set your future up.