Becoming a landlord for the first time can be daunting, whether you are inheriting a property or looking to start your portfolio. Felicity J Lord have some some tips for first-time landlords on what to research and understand before sealing the deal.
Secure a buy-to-let mortgage
Mortgage deals will change over time and you need to ensure the letting income will cover the mortgage now and in the future, if the rates increase.
Be prepared to provide a lot of information about your finances to your mortgage lender, even if you are putting down a large deposit. Most lenders will expect you to prove that the rent you will be receiving is going to cover the mortgage.
Working with a Lettings agent
Felicity J Lord offer a choice of three property management services to help landlords. From finding tenants and compiling their references to moving them in and collecting rent, we can help you every step of the way.
Before buying, check local demand
As part of the process, your local Felicity J Lord branch can offer local market information, including;
- What properties rent the quickest
- What tenants are asking for
- Discover what types of properties the offices need more of
Consider property location and amenities
As a first-time landlord, it’s important to understand what potential tenants are looking for in a rental property. For example - if you would like to rent to a family, properties near schools and parks will perform well. Also, if you would like individuals or a young couple, think about transport links and amenities.
Know your budget
When investing, sticking to what you can comfortably afford is key, especially as a first-time landlord. Especially in the current market conditions, every property type will have an audience, so don’t feel like bigger is better!
Do you need to renovate your rental property?
Replacing the kitchen, and bathroom or even adding a loft conversion to your rental property means you will wait a long time to recoup the value. Finding a balance between making it attractive for tenants and also adding significant value is important.
Speak to your local Felicity J Lord team
For help at any point in your lettings journey, speak to your local FJL lettings team. Find your local branch here.