Investment Properties Mortgage
Investment Properties Mortgage | The Key Issues for Landlords
When you get an investment properties mortgage, there is a lot to think about as a landlord. But one key issue that many new landlords ignore is the business of property management. Providers of investment properties mortgage deals will often make stipulations about how a property is to be managed and the kind of tenancy agreement that should be in force. This is because they want to make sure that their investment will be protected by professional property management.
When you have obtained your mortgage, you will need to do more than stick a card in a post office window to attract the kind of tenant you need. After all, if you have invested heavily in refurbishment and renovation, the last thing you need is to have your new place trashed by the wrong kind of tenant. An even more important consideration is how reliable your tenant will be in paying the rent, so that you can make the required interest payments on your investment properties mortgage.
However, although these are good reasons to use a letting agent once you have an investment properties mortgage, not every letting agent is reputable. That means that landlords with an investment properties mortgage need to give as much thought to choosing a letting agent as they would to selecting a tenant for their investment property.
Making a Success Of BTL
Getting the right letting agent is a key aspect of making a success of your investment properties mortgage. With the wrong agent you could find you have a property that is empty for long periods. This means that you would struggle to pay the interest on your investment properties mortgage. The wrong letting agent may also attract the wrong kind of tenant, who might not pay and who might damage your property. And the wrong kind of letting agent might use the wrong kind of tenancy agreement, leaving you without the legal protection you need in case of a dispute.
Unfortunately, when you have an investment mortgage, you can't just hand the keys to a letting agent and wait to get rich. Instead, if you are using a letting agent, you need to spend some time on choosing the right agent for your property. To make the most of your investment, this should be someone who knows the local area and will be able to market your property in a way that attracts the right kind of tenants.
If you have done your homework before taking out an investment properties mortgage, you might already have found the perfect letting agent for your property. Letting agents can be a mine of information, providing advice on every aspect of your BTL purchase. This includes local amenities, tenants' expectations and guidance on refurbishment and renovation. Of course, these professional services will mean that in addition to the interest on your investment property mortgage, you will have to pay at least 15 per cent of your rent to retain the letting agent. However, the additional expense might be worth it if it means that your property is occupied and well managed. If you want to take this option, check out the members of a professional association such as ARLA to find the right letting agent for your investment properties mortgage.
