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Buying your first buy to let!

Jul 6, 2022 | Article

Buying your first buy to let!

Apparently, being a landlord is one of the easiest jobs in the world. You simply invest in a buy-to-let property, fit it out with furniture, locate tenants and then watch the money from rent roll in…  

Now, in the reality, there is a lot more to it (as I’m sure you would agree, especially fellow landlords reading this).

We have compiled a few things below to give you a heads up on things you should keep in mind as you start your journey into becoming a landlord.

Investment Budget

What amount of capital/investment will you need to kick things off? Purchasing the property, kitting it out, finding tenants, agent fees etc. Get a plan together of potential costs and work this to your budget, build in a buffer as it is never exactly what you think it will be when it comes to costs!

Portfolio Business Plan

Arguably, this is the most important part of your landlord journey. By having a plan to cover the short, medium and long term you will be able to forecast where you want to invest and what you expect in terms of return on investment. Now, there is lots of guidance and legislation available publicly to guide you and many forums available filled with experienced landlords where you can learn from other community members. 

Property Location

Think of how you want to be involved with your property, is it something that would make sense locally or is it in another area, if so – what are the implications of having a property located outside of local access, do you know the areas rental potential, what can you achieve in terms of return on investment etc. (all things to keep in mind) 

Target Market

Are you looking to delve into the student accommodation market? HMOs? Private family lets? Each of these groups will require a different level of focus when it comes to making your investment property a good pick. For example, a private family let may favour an area close to schools, parks and garden space, whilst a student let may be better focused in university town centres, close to facilities and good transport links to and around the campus. 

Self-Manage or Managed

Each has its own benefits and fallbacks, typically, those looking for more a laid-back approach will tend to utilise the services of lettings agents and management firms at a cost. Other potential methods include doing it all yourself which reaps you the full rewards but will mean you are responsible for committing more time to manage everything the tenants and property might need. 

Compliance

Rules, Regulations, Laws and general compliance is a constantly evolving part of the sector that can carry hefty fines and, in some cases, criminal convictions if not followed closely.  

With Lofti, you can expect to feel more in control of many of the points mentioned. Having a connected property management platform, you can take with you on the go with custom reminders and reporting analytics – starting your journey into the world of buy-to-let property is made a whole load easier.

Start easy, start right, start with Lofti