Are you considering buying a property to let in Looe, Polperro, the Rame Peninsula or even over the water in Plymouth? If so, this checklist may help decide on the property to choose.
This and many other top tips and advice based on thirty years experience of the Cornwall letting market are available in the exclusive Fisher Management Essential Guide to Letting Residential Property – available to all Fisher Management landlords free of charge.
CHECK LIST FOR INVESTING LANDLORDS
If you are thinking of purchasing a property to let in South East Cornwall (or elsewhere in the U.K.), you should consider the following points before making any financial commitments: –
Making Your Investment
- Do you have sufficient capital of your own to invest in a property?
- Are you prepared to tie up your capital for a considerable period?
- Will you have sufficient money after you have made this property investment?
- Have you considered the tax implications of buying to let?
- Choosing And Managing Your Property
It is important that the property you buy is appropriate for the purpose and is properly managed thereafter. You should consider the following points before deciding to proceed: –
- Are you regarding this as medium to long term project?
- Is there evidence of consistent rental demand for this type of property?
- Is the location of the property attractive to tenants?
- Most lenders will require you to have an Assured Shorthold Tenancy Agreement with your tenants. Are you aware of the legal implications of this?
- If you are thinking of buying a leasehold property, what is the length of the lease remaining and is sub-letting allowed?
- Have you consulted a solicitor about the legal implications of renting out your property?
- Have you investigated the running costs of the property (e.g. ground rent, service charges, repairs, letting and managing fees, etc)?
- Have you allowed for furnishings and other start-up costs in your calculations?
- Have you allowed for void (empty) periods between tenancies?
- Have you considered the factors that may affect movements in the property’s value?
- Are you aware of all the safety regulations applying to rented property?
- Will the net rental yield, i.e. the rent remaining after you have paid the property running costs, be sufficient to meet your monthly mortgage payment?