Buy To Let Property Investment

You can earn a steady stream of income from rent payments made by tenants.

The value of the property may increase over time, allowing you to make a profit when you decide to sell.

Real estate values and rental income tend to increase with inflation, providing a hedge against its effects.

You may be eligible for tax deductions on mortgage interest, property taxes, maintenance costs, and other expenses related to the property.

Buy-to-let properties can be a long-term investment strategy for building wealth and generating passive income.

This is perhaps the biggest thing to consider, the location. You need to pick a location that you’re certain you will make money on, but importantly as a landlord it depends whether you would want to be within close proximity to the property or not for on-going maintenance and repairs.

Having a good choice of local amenities and transport links will increase your chance of getting tenants and maximising your rental income.

The type of property is also important, a flat might attract a professional, where as a 3 or 4 bed detached house might appeal more to a family, which may have different degrees of ware and tear. Certain types of properties in certain areas might be easier to find tenants as well, which is something to consider.

This is obviously an important factor as it determines how much profit you’re going to be making on the property. This is the percentage figure calculated by taking the yearly rental income of the property and dividing it by the total amount invested in the property.

You need to decide whether you are going to deal with finding the tenants yourself, or instruct an agency to do so for you. You need to understand who your ideal tenant is an work towards that, as we’ve mentioned this can be determined by the type of property or the area that your property is in.

There are a few taxes that you need to be aware of when you become a landlord. You get taxed on your rental income, and when you come to sell the property you might be subject to Capital Gains Tax (CGT), however you can also offset some of the costs by claiming back on Council Tax amongst other things.

You’ll need to research and find out more about landlord insurance, there’s no legal obligation to have it, but it can be a good idea to cover some potential costs or expenses.

Ultimately as a landlord your job is to ensure that the property is safe to live in for the tenants. You’re responsible if there is any damage, even if they cause it, and you might have to replace or repair things within the property at any given time. You are also responsible for providing an EPC certificate, a how to rent guide & Gas Safety Certificate (yearly) to the tenants.