Investing in Rental Property
Investing in Rental Property | How To Best Use Letting Agents
When investing in rental property for the first time, it is important to get as much help as possible. There are many reasons for investing in rental property. Some people try property investment because they want to supplement their pensions. The government's warnings about pension shortfalls make this a consideration for some property investors. Other people fall into rental property because they buy a property that needs fixing up and then decide to let it out rather than sell. Others try investing in rental property because they want to provide a good standard of accommodation for their children who are going to university.
Whatever your reasons for investing, it makes sense to take professional advice before embarking on this new venture. One person who can be invaluable to those starting out is a letting agent. A letting agent is an important part of the buy to let process. When investing in rental property, one of the first steps is to find out what type of rented property is most popular in the area where you intend to buy. If flats are the most popular in your region, there is little sense in buying detached housing. And if there is a need for student housing, there's no point in investing in smart city centre flats.
BTL Amenities
As well as knowing what type of property people will be looking for, it is important to know what amenities there are in the area. Prospective tenants will want to know about transport, schools, restaurants and shops as well as other local facilities. A letting agent is in a good position to advise on these crucial areas.
Refurbishment and renovation are important factors and this is another area that a letting agent can help with. An experienced letting agent will know the standard of rented property in the area and will be able to advise on what you need to do to match or improve on this standard.
Most first time landlords will find that BTL mortgage providers may require the involvement of a professional letting agent. Not only is it important to seek professional advice before embarking on a buy to let but it may be a condition of the mortgage that a letting agent be involved in managing the property once it has been purchased.
The role of the letting agent is much more than advising people when investing in rental property. Property management can be a difficult challenge for new landlords, as it involves decisions about furnished or unfurnished letting. It also involves helping to market the property, vet new tenants, manage tenancy agreements, collecting deposits and rents and any other administration that may be required. The fee for these services may be any where from 10 per cent to 20 per cent of the rental income, but it may be worth it for those who are new to investing in rental property.
