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Buy to-let errors that need to be avoided

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Buy a property to let out can be an amazing investment and in most cases it definitly is a great idea. This is a great way to make money on the side, earning whilst you sleep, work and having fun. However... there are some hurdles that could come a long the way and here are some errors you need to avoid!

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Buy to-let errors that need to be avoided

  1. 1. Buy-To-Let Errors That Need To Be Avoided
  2. 2. Manage your finances • You need to organise your income and outcome if you want to reach the potential profits of your investment. It is importnat that you decide how you are going to use the rent that you recieve for the tenants. Are you going to use that purely for your leisure, to pay off your mortage or to put into savings. You must also relise that there will be unexpected payments along the journey of your buy-to-let life. These can include maintenance problems and time waiting around for a tenant to move in. These all need to have a plan ready for them to happen otherwise you may be hit with a large cost that you can not pay off.
  3. 3. Find the right tenant for you • The tenant of your property is an extremely important element to your success in the buy to let world. You need to plan out what sort of tenant you want and search for them in the right way. For example do you want students who have a guarrantor ready for any underpayments, or do you want a proffesional who needs to have a steady secure job. Take into account a family may leave more wear and tear and a pet in the home could cause damages. You need to idenitfy what tenant you will be able to manage best. When you think you have found your ideal tenant, don't just take their word for it, do all the checks! These include credit check, past landlord references as well as work place references. You want to make sure they have not been in debt, have a secure job or means of income and that they are a respectful person.
  4. 4. Look after you tenant • Once you have found your ideal tenant, it is imporant you then look after them. If you have a good relationship with them, they will have more respect for you. If they are happy with you, they may be more inclided to let you know in advance if they are having any doubt of being able to pay on time, therefreo you will be able to manage you finacnes easier. Also, they will be more likely to respect the apartment, abiding by your rules and not making damages or messes in your apartment. Another point being, when their tenancies is coming to and end, it may be more likely that they are going to renew as they like you as a landlord. Or, on the other hand if they want to leave, they could refer one of their friends or family to you which will help avoid the wait time and effort into finding a new tenant.
  5. 5. Buy the right property • If you are looking to invest in a house, you probably have a decent amount of money. This would mean you live in a well prices area. Buying a property close to home would be tempting, however this may not be a great idea due to the prices. You must research the surrounding ares to find the right property for you which will attract the right tenants, who can afford the prices and can also bring you in a good return on your investment. You need to find a balance of high yield and high demand and this may not be so easy so make sure to do your revision!
  6. 6. We hope you enjoyed our blog: Buy-To-Let Errors That Need To Be Avoided If you have any questions or require further advice, don't hesitate to contact us: Twitter: @GlocalR Facebook: Glocal Residential Or, Call us today: 0121 655 5188
  7. 7. We hope you enjoyed our blog: Buy-To-Let Errors That Need To Be Avoided If you have any questions or require further advice, don't hesitate to contact us: Twitter: @GlocalR Facebook: Glocal Residential Or, Call us today: 0121 655 5188

Buy a property to let out can be an amazing investment and in most cases it definitly is a great idea. This is a great way to make money on the side, earning whilst you sleep, work and having fun. However... there are some hurdles that could come a long the way and here are some errors you need to avoid!

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