Looking for a reliable, long-term passive investment income–with low risk? Seems too good to be true, but it’s not!
One of the safest investments is buy to let property investing. Simply, this is where you buy a property, such as an apartment or condo, with the aim of renting it out for profit.
However, before jumping in, you need to make sure you invest smartly. To learn more, keep reading to find our guide to getting started with buy to let homes.
Crunch the Numbers First
For a buy to let mortgage to be worth it, financially, you need to first work out how much you can afford to buy.
If you’re not purchasing outright, you’ll need a mortgage to cover the rest of the property price after your deposit. You’ll want to crunch the numbers to work out approximately how much your mortgage will cost each month versus how much you’ll bring in from rental income.
After taxes, fees, and rental agency costs, will you come out ahead each month?
Find the Right Buy to Let Property
Next, you need to find the right place to buy. When it comes to the perfect investment, these properties will be in desirable areas, within your budget, and in decent condition.
While there’s nothing wrong with a DIY fixer-upper, keep in mind that any repair costs will cut into your budget.
Know Your Responsibilities as a Landlord
Before becoming a landlord, make sure you’re up to the job. It may seem like a fun, easy way to make money, but being a landlord is actually a serious job with plenty of legal requirements.
We recommend familiarizing yourself with all of the legalities of being a landlord. These include managing security deposits, keeping the property in good condition, handling evictions legally, and selecting tenants without discrimination.
If you’re new to renting out your home, you may find it helpful to manage the rental through an agency. Although they charge fees, they can save you lots of confusion and time.
Start Looking for Tenants
Next, you’ll want to find the right tenants. Know that you must treat all applicants fairly, in accordance with the Federal Fair Housing Act.
When reviewing tenants, look for good credit history, solid employment, positive references, and impressive rental history. Once you find the right tenants, hopefully they will want to stay for years to come.
Start Enjoying Your Generous Rental Returns
Ready to get started? By following the guide above, you can find the right buy to let property and let it to tenants who will look after it like their own.
It may take some time until you find the right buy to let property for your budget, so try to be patient! The right place is sure to come along, providing you with a steady investment income that can fund your retirement or provide a solid nest egg.
Soon, your first rental income payment will be rolling in!
Did you find this article useful? If so, please keep reading for more helpful advice.