Do Your Homework

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When choosing the property you want to let, you've got to keep one thing in mind - it's strictly business. With our help you can make sure you take the right approach to finding exactly what you're looking for.

It's important to remember that buying a property to let isn't the same as buying your home. Very often, you're not looking for something that appeals to you, you're looking for something that's attractive to possible tenants. It's a commercial decision rather than a personal one. So you need to do some market research before you decide on the property and choose how you're going to pay for it. Get out and about, checking the area, finding out whether rented accommodation is popular, and looking at the prices of similar properties. You could start by visiting estate agents and checking the local papers.

Another thing to think carefully about is the type of property you're looking for. Again, remember you're not looking for somewhere you'd like to live; you're looking for a property that's going to be easy to let. So decide on the type of property that's best suited to being rented out and one that's likely to increase its value over time.

When you're looking for a buy-to-let property, you should be looking at quite a few places. After a while, it gets pretty difficult to remember the differences between them. That's why you should write down your priorities before you get started.

Think about the area, the tenants and their priorities. What's important to them in terms of amenities, transport and shops? Is parking an issue? What about schools?

Remember to think about your ideal tenants and what you'll need to have in place to get the best possible rental income. You can use your list to judge the properties you visit, either before you go - saving time on visiting properties that don't match what you're looking for - or during your visit.

These are some of the simple common sense observations you should make;

Kitchen: Is the kitchen big enough to accommodate a small dining table?
Smallest bedroom: You need to be able to get a bed in a bedroom and if it is not big enough then this room can only be considered as a study or a baby's room. This must be a factor when considering what type of tenant you are looking for. If you are looking for two professional people to share a two-bedroom flat, then the second bedroom must be big enough to be used for that purpose.
Bathroom: Is there a fitted shower? A bathroom is a lot more desirable if there is a power shower. If there are two bathrooms then so much the better, even if it is only a shower room.
Heating: Is the heating system old? This can be costly to replace. If possible, get it checked prior to purchase. It is your legal duty to provide heating and to issue a gas safety record.
Electrics: Are the electric sockets old/in bad shape? This will tell you that at some point the whole electric system will need rewiring.
What if I lose my job?
Student Property: If you are looking for a student let then consider properties that have a good size kitchen diner or a second reception room. You may also find a house with a large loft space that could make an extra room.
Service charges: If it is a flat, you will have to pay service charges. Ask the agent if he has any details of the service charges. Some places have very high service charges that could render the whole investment unprofitable.

Location

Location, location, location. It's just as relevant to buying-to-let as it is when you're buying your own home. What size of property can you afford? Who do you plan to let the property to? One-bedroom flats suit young single people - so look for areas with bars, restaurants or a good social scene. For families, you'll be thinking about a three or four bedroom house and somewhere near a school or shops.

There are other things to take into consideration. Transport, the current availability of rented property and the likelihood of the properties in the area increasing in value are all important issues to think about.

Furnished or Unfurnished

In the current market, unless it's a property being used for corporate relocation or student accommodation, unfurnished or part-furnished properties are particularly popular. So when you're showing prospective tenants the property, it will have carpets, curtains, and fitted kitchen and bathroom - but no furniture. Also, unfurnished properties, whilst untenanted, do not attract council tax.
That's why it's important to offer a good quality property decorated in plain colours - so tenants can easily adapt it to suit their own furniture.
If you're going down the furnished route, you must take Fire and Furnishings (Safety) Regulations into consideration. And that means making sure any furniture in your property complies with the regulations and carries a label showing that it's passed the correct tests.

Ready to let or needs some work?

Should you refurbish a property? If you are new to the property investment, it may not be advisable. It could take you a long time to recoup the money and because you have invested a lot of money on the property you may price yourself out of the rental market by needing to get an unrealistically high return.

If you have some experience and can buy the property at the right price, then it could be the right thing to refurbish but beware that your return will need to be carefully considered.

What type of tenants?

Another important consideration is to identify who you are going to rent the property out to. Be realistic, don’t expect students if you are miles from the university, and not many young professionals live in the country. You should ask a letting agent to let you know what sort of rent they would get for the property and the type of tenants they could get before committing to buy. You could also benefit from the expertise at Simplicity, we are extremely knowledgeable on the rental property market.

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