Avoiding Pitfalls When Preparing a Property for Tenants - 14/09/10
The cost of renting out a property rose by 2.3 per cent year on year to £676 per month in July.* With residential property in short supply, many investors are considering letting a property as a potential income stream.
Chris Baguley, director at specialist lender Auction Finance Limited, said:
"We're seeing an increasing number of auction bidders looking to buy property they can let with the intention of achieving high yields. Working with so many property professionals, we come across common mistakes that investors make in their haste to get a property onto the lettings market and tenants in paying rent.
"However, before you go to an auction, decide on the sort of tenant you want according to the area the property is in. When you have the property, avoid the trap of doing up a house to your own personal taste. People pay higher rent for well kept houses so make sure it's presentable before showing any tenants around."
Auction Finance Limited offers fast funding for those looking to secure a property at auction and offers five tips to novice buy to let investors:
- 1) Ensure the property is in good repair with no leaks and drafts. Central heating and all electrical appliances should be in safe working order and the property should be desirable to potential tenants.
- 2) Always substantiate tenant references, draw up a contract, carry out a full inventory and agree regular inspection dates.
- 3) Seek advice from your accountant on tax implications of renting a property and get buy to let insurance.
- 4) If you buy a House in Multiple Occupation (HMO) check any legal requirements.
- 5) Keep abreast of new or changing landlord regulations.
*Research carried out by LettingZone
