Thinking of becoming a Landlord?

- Wed 30 Aug 2023

It is often referred to as the best way to prepare for retirement, whether to compliment your pension or in the past, even instead of a private pension. The investment in property, and particularly the letting of a residential property where you receive income each month as well as increasing the value of a home over the years in which you let it out, is the most common method of property investment.

We have seen an increase in investment buyers throughout 2023, whether people are dipping their toe in the water or jumping in, we thought it may prove useful to give you some help if you are looking at property investment.

You will also have to consider how to manage your investment, whether thinking of going through an agency or are you going solo to organise letting the property?

Read our 3 tips to letting now and in the future and what you should keep an eye out for:

Being a Landlord is just like a business, and with any business venture, there is no guarantee of success when starting out as a Landlord. Which is why it is important firstly to be clear of your expectations and what tools you need to achieve that.

1. Start by identifying affordability and the type of property you are able/wanting to buy. Target a location, where it is local to where you live or perhaps you prefer something a little further away. The start researching the amount you are likely to pay for a home, and what rent you are likely to achieve in return. Allow for repairs, void periods (between tenants), management charges, plus your personal tax position with the income you will receive.

2. Once you have started viewing properties and are looking to make offers you will get a feel for different sales/letting agents. Those agents you build a rapport with are likely to be able to offer you guidance on the expected rental income and the areas where demand is high both now and in the long term.

3. Ask the letting agents about their referencing processes for tenants, the due diligence they go through to place a tenant in a property. The worst case for any Landlord is getting the wrong tenant in situ, either not paying rent, damaging the property or even both! The difference between some letting agents and others is vast. Speed isn’t everything in getting tenant in your property and paying rent, of they are the wrong tenant it could cost you more than a few days rent!

It is important to protect your investment, by instructing a professional management company with a good reputation to ensure your rent is received on time, the property is looked after, and ideally suitable tenants are found and remain in the property.

Look for a Propertymark ARLA (Association of residential Letting Agents) Letting Agent to ensure your chosen agent will keep you up to speed on what is needed to remain compliant.

As we are in a market where landlord compliance and regulations are ever changing, managing your letting property can be very overwhelming at times. Here at Bradleys Estate Agents, we can provide you with as little and as much support as you may need. We have a range of management services being bronze, silver and gold packages, from just a tenant find to a full managed property. To see what the three packages offer, please follow the link here - click here.

Currently the rental market isn’t yet showing us any signs of slowing down, there are hundreds of tenants for almost any property (providing the rent is realistic), so if now is the time you are thinking of becoming a property Landlord now is a great time to get in touch with your local Bradleys branch. We have 30 offices covering the West Country, only a call away and open 7 days a week until 9pm and as all the team will deal in both letting and selling, all our team members will be happy to help with any enquiry or guidance you would like.