Investing in property has always been considered a smart move, and it can become even more profitable for you if you end up renting out that property. Having other people pay off your mortgage each month through rent is a great way to see a return on your investment, and its understandable why many people choose to do this. However, there are also a lot of responsibilities you will need to take on as a landlord; it’s important to think it through carefully before you start going down that road. Here are some key things you will need to consider before becoming a landlord.
Invest in a Good Property
The better the property, the more you can charge to live there. Even if you had a large property to rent out with four bedrooms, if the place isn’t in the best location or good condition, you can’t expect people to pay top price for it. You will need to think about whether or not you want to buy a property to renovate before you sell, or whether you want one that’s ready to move in to. For the latter, you might want to focus your search on looking at new builds like these properties by Linden Homes.
Think About the Location
Another important thing you need to think about when buying property to rent out is the location. This kind of things will not only affect the overall value of your property but will also impact how much rent you can charge and the appeal of your property to potential tenants. For example, a city centre apartment will likely attract more people because it’s a convenient and desirable location. Additionally, a good-sized house in the quieter suburbs will probably be more appealing to families or older tenants looking for some peace. In any case, make sure it’s close to useful amenities such as a grocery store.
While you want to be able to charge your tenants enough to pay off your mortgage and make a profit, it’s worth looking into other rental prices in the area and sees how you can compete. Some landlords include bills in the price, and this can be very appealing to tenants as it saves them the hassle of organizing these things themselves. Consider what kind of rent you can charge and deals you can offer tenants to get them to sign a lease with you and not another local landlord.
It’s important to be aware that you might have to make some modifications to the property you’re renting out for health and safety purposes, for example, having fire doors installed, checking the alarms, security systems and fire blankets/extinguishers in suitable positions around the house. As a landlord, you have a duty of care to your tenants, and these modifications to your home are necessary for you to uphold that responsibility.
There are many perks to being a landlord, but you must be prepared to make yourself available to your tenants when they need you and investing a little extra into a property to make sure it’s up to standard. Before you decide to purchase a property to rent out, think about the points above and whether it’s something you can commit to.