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The MSE Buy-to-Let Guide
Comments
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I am in Scotland, and with about 10 years left to work before retiring, want to buy-to-let as an investment before I retire. Are there any pitfalls I should watch out for? Is this even a decent choice now for investing? Any help appreciated.0
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I think this is still a viable choice of investment. The housing supply problem isn't going to resolve itself for decades. So with property in short supply, it should always hold its value.
The pitfalls to avoid are:
Not making allowance for repairs and renewals when assessing the income a property will produce.
Not saving the income tax into a seperate account/pot for when it is due to be paid.
Not buying a property that is suited to the rental market in the area. (Take advice from the local letting agents as to what sort of accommodation is the there an on-going requirement for)
Not considering allowing pets in exchange for a higher rent. (Pet owners will pay more and tend to stay longer because it is more difficult to find somewhere to move to if you have a pet. Dogs do cause more wear and tear, but the higher rent covers the cost of restoring the property to a lettable condition.)
Not having a proper inventory of the items in the property and the property condition with photographs to prove this.
Not understanding all the legal requirements. Gas/electrical safety, furniture fire safety, epc, legionella, health&safety, immigration status of tenants etc
Not vetting tenants and taking references.
A letting agent can help with some of these, but it helps if you understand what you are paying the agent for.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0 -
Hi Sheri, I would advise joining the National Landlord Association as they have a great site and a telephone advice line which is excellent. Read up on the subject, choose a property that is well situated (with good transport links and demand for rental properties). I think a small house is a good bet, two bedrooms at least with a small garden or yard. I have two buy to lets and I choose my own tenants (very carefully, using the vetting service provided by the NLA which is thorough and far better than I could do myself). I also manage the houses myself which I think is better than using an agent. I visit both of them at six monthly intervals to inspect the property and chat to my tenants to see what, if any problems there are and agree any maintenance that needs to be done. Be a good landlord, carry out repairs promptly and your tenants will respond by staying with you. Unfurnished is best as tenants tend to stay longer and it cuts down on maintenance issues. Good luck. regards, Polly.0
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I currently have a right to let on my residential mortgage. As I'm on the variable base rate of 4.49% at the moment, I'm looking into switching to a slightly lower fixed term buy to let mortgage. Can anyone see any possible pitfalls in doing this?0
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Hi
I've currently got a flat that I own outright and has a tenant in and also a house which has a mortgage on it with a permission to let and is rented out.
I contacted my current lender about taking a BTL on my house and they said my income wasn't enough to cover it (even though the rent from the house more than covers it).
I'd like to move out of the area and buy somewhere else, does anyone have any advice on lenders to go to so I can get a BTL on both or just my house?
Thanks0 -
Hi
I've currently got a flat that I own outright and has a tenant in and also a house which has a mortgage on it with a permission to let and is rented out.
I contacted my current lender about taking a BTL on my house and they said my income wasn't enough to cover it (even though the rent from the house more than covers it).
I'd like to move out of the area and buy somewhere else, does anyone have any advice on lenders to go to so I can get a BTL on both or just my house?
Thanks
You need a good broker"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Not considering allowing pets in exchange for a higher rent. (Pet owners will pay more and tend to stay longer because it is more difficult to find somewhere to move to if you have a pet. Dogs do cause more wear and tear, but the higher rent covers the cost of restoring the property to a lettable condition.)
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As a pet owner, home owner (and prospective future landlord) I'm glad that someone is considering pet owners. It's true that it's difficult to find somewhere to rent if you have a pet and I would certainly be open to renting to pet owners.
I have to partially disagree on the dogs being more destructive though, based on my experience. Aside from shedding fur and having balls of various sizes littered all over the kitchen, there's very little sign of dog in my house. Each room has kitty evidence however, from the scratches on the textured wallpaper up to knee height, fur on furniture, curtains, floors, and threads pulled up on mats and carpets, oh, and scratches in the furniture. Mine are indoor only however and even with scratch posts around the place tend to go for unintended surfaces.
For anyone intending on renting to indoor cat owners I suggest the absence of textured wallpaper, and if furnished property no expensive furniture
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the point is that if you have pets you have the "potential" for them to ruin the house. just because you have pets and they are great and do not cause any damage etc (which is lovely) it isn't to say that your new tennent's rather angry pitbull isn't going to jump up and damage the front door every time someone knocks, or poop on the floor whenever it feels like it.
as a landlord you have to at least take into account worst case scenario and not base your opinions solely on your idyllic situation.No Links in Signatures by site rules - MSE Forum Team 20 -
When are you actually going to publish this revised buy to let guide? the holding page has been up for months0
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