Property landlords need to get all aspects of their property management running smoothly and effectively if they are ever expecting to achieve the better returns on their investment. There are many pitfalls that need to be avoided and understanding exactly what they are is the key.
You will need significant cash reserves to cover all immediate outgoings when you enter the buy-to-let property market. From stamp duty to mortgage deposit to solicitors fees there are considerable drains on your available cash and prior planning is needed to ensure you do not waste money by running out of liquid cash at this early stage.
Choosing the right property is the single biggest factor that will influence how successful you become as a landlord. You should identify a property advisor who is an expert where you are buying. They should have sufficient knowledge covering the area you are buying in and its surrounding neighbourhoods to ensure you get the best advice possible.
Once you have acquired your property there will be additional costs that you will incur and you will need a detailed understanding on those costs before you make your decision to enter the market. Your rental income will need to cover mortgage payments, buildings insurance, maintenance charges as well as periods when you may not be receiving income when you are between tenants.
Before committing to a buy-to-let mortgage you should speak to a tax advisor to understand the full tax implications. Taxes you will be liable to include stamp duty, capital gains tax (when you sell the property) and income tax on the profit you make from renting out your property. The tax requirements can change at any time so it is important to get advice as you are planning to enter the market.
Managing Your Property
This can be the most time consuming and problem strewn area of the entire process. From drafting contracts, finding tenants to dealing with maintenance issues there will be a considerable drain on your time. Cityzen Property Management will solve all of these problems for you quickly and effectively and through their knowledge and experience will actually save you money.