Mistakes that buy-to-let landlords should try to avoid
Buy-to-Let can seem a rather sure-fire way to make money, with the increase in property prices and more people renting than in the past.
Lettings a property can be an intricate business. Here are five questions every
Landlord should be aware of to make sure their rental property doesn’t turn into a
1. Lengthy empty periods - the property is only making you money on rent if there are tenants living in it. Landlords still have to cover their mortgage regardless of whether they are getting any rental income, make sure the rent you are asking is reasonable to avoid these
2. Being ignorant of tax - as a Landlord, you need to pay tax on the money you receive from tenants.
3. Not accounting for hidden costs - Buying-to-Let is an investment and initially, you will have to spend money to make money. While you know about mortgage repayments and
letting agent fees, there could well be lots of extras you haven’t thought of.
4. Choosing an unpopular location - Location, location, location it’s a cliché but definitely one you need to be aware of.
5. Not checking tenants thoroughly - Putting the time in to select good tenants will benefit your rental business. If you don’t do your research beforehand, you could end up with tenants
who damage your property or miss rental payments - leaving you seriously out of pocket.