How to get started in Buy to Let

Checklist provided by 

www.propertytribes.co.uk

 

 
We’ve teamed up with Property Tribes, the UK’s leading landlord and property investor community, to bring you a checklist to help you get started in buy to let safely, profitably, and compliantly.
Are you sure this is the best way to invest?
Speak to an independent financial adviser who can help you compare different returned when investing your money
  Research demand
Speak to local letting agents to research demand and location, for both now and in the future
 

Compare properties
Calculate rental income, cost and net cashflow for different properties. Include:

    • preparations to let legally
    • maintenance over the next 20 years

Read more about seeing how a deal stacks up here

  Don’t rush!
It could take months to complete your research and find the right property and deal
 

View properties
Using a checklist can help maintain consistency if you are viewing a large number of properties.

Here are 21 questions you need to ask at each viewing

Print out the list and take some pictures on your phone to remind you of each property you view and help you make valid comparisons

Buy below market value
Buying at a discount provides protection against possible future price falls and locks in equity, boosting returns. See some negotiating tips here
Be prepared
If you need finance, have at least 25% of the price in your bank account for deposit and costs. Appoint a solicitor or conveyancer before making an offer

Prepare the property
You have a duty to provide a safe and legal property. Some of the preparations and checks required to meet the 400+ rules and regulations include:

    • EPC rating of E or higher
    • a valid gas safety certificate
    • safe electrics
    • working smoke alarms (and carbon monoxide detectors where required)
    • no damp or mould
    • furnishings meet fire regulations

Self-management or letting agent?
Self-managing is a major commitment but you can find some tips here. If you use letting agent management, make sure the agent:

    • belongs to a redress scheme (a legal requirement)
    • has Client Money Protection (due to become mandatory on 1st April 2019)
    • is a member of an accredited organisation such as ARLA, RICS or NALS
Fully reference potential tenants
A letting agent can help, or you can find online tools here

Move your tenants in and begin your landlording career
Remember you are now running a business so treat it as such

Visit Property Tribes regularly to keep up to date with the latest news, industry up-dates, and trending topics and discussions for landlords.

 


All our information is brought to you by Kate Faulkner, author of
Which? Property books and one of the UK's top property experts.
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