Investing in a buy-to-let property can be an effective way of generating income. However, this type of property investment is not the same as buying a property and living in it yourself. The key issues you need to think about include how you will fund the purchase, whether the rental income will cover your outgoings, how you will manage the property and tenants and how the property will affect your tax position.
In other words you need to focus on the prospects for income and capital growth, and the costs that you will need to cover. Key factors to consider include:
- The local property market and the outlook for house prices
- What kind of tenants you are hoping to attract, and what they look for in a property
- The rental income you can expect to achieve, and how this compares to your financing costs
- Other costs you will need to meet, including maintenance costs and agents’ fees for finding and managing tenants (if required)
- Meeting your costs during ‘void’ periods when your property is empty and producing no rental income.
If you are planning to let your property to several tenants, you may require a licence from the local authority and introduce specific safety measures which will be subject to inspections. Our dedicated team can act on your behalf with all of the matters to make your buy-to-rent experience as straightforward as possible.