Recent figures have shown that a whopping 20% of homes are now owned by landlords, which means that if you’re thinking about getting in on the action, now is most definitely the time to grab a slice of that pie! Here, in the third and final part of our series, we share everything you need to know about advertising and getting that buy to let mortgage. Looking for a house or want to post an ad? Include as much detail as you possibly can – the last thing you want to do is lose potential tenants because you didn’t include enough potentially important information, such as the size of the bedrooms and any furniture included in the rental. Read on to find out more.
- When advertising, more is definitely more. In the vast majority of cases, just saying, “2 bedrooms, 2 bathrooms, large living space” will not be enough to entice potential tenants and viewers. Give as much information as you can, but keep it concise. You’re not writing a creative essay, you’re describing your rental – so although you should use enough descriptive language so that the reader knows exactly what you have to offer, without boring them to death with flowery lingo. Include photographs of every room, and if you don’t want to include a photo of one of the rooms, figure out why and then clean it/decorate it/repurpose it so that it can be photographed and included in your listing.
- Put simply, in order to obtain a buy to let mortgage, you need to have a substantial deposit. If you have that, you’ll find it fairly easy to get a buy to let mortgage, regardless of your credit status because the repayments are guaranteed by the rental payments. The rental price that you charge will largely depend on the market and the minimum annual cost of your mortgage. Generally, rent should be 125% of the mortgage, but this does differ dependent upon lender.
- You’ll also need to factor in costs such as landlord insurance, rental protection insurance, monthly expenses (for example, regular maintenance, having electric and gas certificates, an allowance for any works that may need to be done to the house during the tenancy, and insurance for any furniture or furnishings that you provide for the tenant), legal costs, letting fees and agency fees. You can then add these into your tenant’s monthly rent fees, or choose to pay them out of your own pocket in order to attract more tenants. The choice is yours, but it is always recommended that you take out rental insurance, just in case you’re unlucky enough to end up with non-paying tenants.
- Finally, make sure that you obtain all of the relevant permissions from your mortgage provider, the council and your insurance company with regards to the standards that you need to adhere to before you advertise your property.
Source: Prime Location