Many entrepreneurs see the buy-to-let market as a relatively safe and profitable area for investment. It’s true that if you own a property that can be rented out, the rental income you receive after the expenses are paid off can be high. However, working in the property market is certainly not for everyone. Becoming a landlord comes with certain legal and moral responsibilities that you must be willing to take on. To succeed, you must have a certain skill set, and you must be fully committed to the role. Are you cut out for the buy-to-let market? Answer the follow questions and read the following advice to find out.
Are you willing to work around the clock?
When you are starting out and your finances are tight, so you will probably want to keep costs low by managing the property, or properties, yourself. If so, you must be prepared to be on call 24 hours a day for your tenants. In case of an emergency, you must be able to drop what you are doing and deal with the problem.
Are you a “hands-on” person?
Inevitably things will go wrong with your rental property, and if you are keeping costs low, you may need to carry out maintenance and repairs yourself. So, you should be prepared to get your hands dirty with the odd DIY job like light plumbing, fixing door handles, painting walls, etc.
Are you financially prepared for the expenses?
On top of all the costs you incur in owning the property (mortgage repayments, council tax, etc.) you must be financially prepared for the additional landlord expenses. These costs include tax on any profit made from rental income, UK landlord insurance and energy performance and gas safety certificates. It is important to do a thorough assessment of your financial situation to make sure that you are making a viable investment.
Do you enjoy working with people?
Being a good landlord means having excellent communication and people skills. You will be dealing with tenants, who are relative strangers to you, on a regular basis. You are aiming for a relationship of mutual respect with your tenants, and it’s largely up to you to establish this. Unfortunately, some tenants may turn out to be difficult. Being able to stay professional and calm in the face of a demanding tenant is a skill you will need. Tenant-landlord feuds can get nasty, so it is important that you can manage a situation effectively before it escalates.
Do you have the connections?
If you plan to expand your business to more than a couple of buy-to-let properties, it starts to get tricky to manage all the admin, maintenance and other elements on your own. You will need to build up a network of trustworthy services that can help you manage your property. The focus should be on finding services you can trust. Otherwise you might end up paying for a second-rate job, causing you more money and time to fix.
So, are you cut out for the buy-to-let market?
