Buying an investment property needs careful consideration and getting it right should ensure a long term income and capital growth.
Where to go for advice will be a decision to be made. Estate Agents and Letting Agents have a vested financial interest in any advice given to you because of the fees and commissions they generate.
Getting the right property in the right location, at the right price, which is able to generate the right rent and/or resale price is crucial to your business.
There are advertisements for "training courses" from Property and Wealth Creation Gurus, Deal Sourcers, Make you a Property Millionaire, No Money Needed, Creative Strategy and other Jargon Words. They have a common theme. Feedback suggests that apart from a large fee delegates are up-sold further courses costing up to £15,000. Before you sign up to one of these courses please do lots of due diligence and ask yourself "are the claims made really doable". If something sounds too good to be true then it usually is. These businesses are generally "unregulated" and, therefore, outside the scope of the FSA. There are many stories on social media and property forums of individuals experiences of some of these types of learning.
Hopefully you will find my advice to be well considered, independent and in YOUR best interests.
Becoming a first time property landlord in the Private Rented Sector is a big step requiring a long term large investment in a market governed by legislation and regulation. It is not a simple matter of buying a property and collecting the rent.
Where to go for advice will be a decision to be made. Estate Agents and Letting Agents have a vested financial interest in any advice given to you because of the fees charged to you and your tenant. I would hope to give you the knowledge and confidence to manage your rental yourself. Why pay 15% of your rental income to someone else?
Using a letting agent does not exempt you from the legal and regulatory obligations of a landlord. It is you who will bear the financial loss and stress not the letting agent. THE BUCK STOPS WITH YOU.
When a landlord and a tenant enter into a Tenancy Agreement they have a legal document which gives both parties rights and responsibilities which are governed by legislation and regulation.
I cannot stress how important it is for new Landlords to understand and know what these are, and the pitfalls to avoid, so that the tenancy period functions in peace and harmony. Ignorance is no defence in law, and can have an expensive and psychological cost.
Getting the right tenant, creating a tenancy agreement and the associated documentation, and dealing with the deposit are key processes, and if not done correctly at the outset they can have a huge impact to your investment in the future, especially if you need to end a tenancy.
I cannot stress too much how important this is and the consequences of getting it wrong.
If you would like to have a FREE one hour telephone or Skype chat with me please contact me via the Contact Page.
The most common words said to me by new would be entrants are "I didn't know that"
A – Z of Property & Landlord Knowledge
Accounts, Advertising, Aims & Objectives, Business Plan, Communications, Data Protection, Deposits, Disclosure, Due Diligence, EPC, Estate Agent, Exit Strategy, Eviction, Fees, Finance, Forums, Guarantor, Government Policies, Growth, How to Rent, Housing Benefit, HHSRS, Income, Inspection, Insurance, Inventory, LACORS, Landlord’s Associations, Letting Agents, Licencing, Local Authority, Location, Neighbours, Notice to Quit, Obligations, Ownership, Pets, Property Type, Record Keeping, Referencing, Refurbishment, Regulation, Relationship, Rent, Repairs & Maintenance, Repossession, Research, Reserve, Right to Rent, ROI, SDLT, Tax, Tenancy Agreement, Tenancy Checklist, Tenants, The Deregulation Bill, Universal Credit, Utilities, Viewings, Voids, Wills.