Khalil: Five things you must know before you buy to let

Five things first-time landlords must understand

So, you are thinking of becoming a landlord? The buy-to-let market continues to provide strong returns, thanks to the high demand for rental properties. Yet, at the same time, the sector is being hit by new taxes, tougher regulation and the threat of interest rate rises.
Here are five things you should know before investing your cash – and one way you can guarantee yourself an easier life and income every single month.

Five things first-time landlords must understand:

1. This is a long-term investment
The days of rocketing house prices may have come to an end, but buy-to-let still offers a very attractive investment option. And it’s a great supplement, or alternative, to your pension.
However, being a landlord is not a quick way to make cash: you should think of it as similar to the income that you could gain from a small business.
If house prices go up it’s a bonus – but this is certainly not something you should bank on.

2. You need to do your research
Get your calculator out and research the potential rent and what your return from this will be.
You will obviously need to factor in your deposit and mortgage repayments, but don’t forget other ‘hidden’ costs.
These include fees for finding tenants, covering void periods (when the property is empty), and the maintenance and refurbishment of your property.

3. You must choose your property carefully
• Are you investing in a house or a flat?
• What condition should it be in?
• And who are you aiming to market it to – students, families, couples, workers, those on benefits?

Student houses are always popular in Brighton, and generally provide a good return, but they can be challenging for inexperienced landlords.
Another option is to acquire a family home and turn it into a Home in Multiple Occupation (HMO). This can deliver greater returns from a larger number of tenants. Do consider, however, that HMOs involve strict licensing and safety regulations, and this can be off-putting for first-time landlords.
Whatever you decide you must make sure the property you buy is in the ideal area for your prospective tenants.
4. Make sure you take advantage of a great mortgage deal
Mortgage deals remain favourable – there are even great deals out there on just a 20 per cent deposit.
But recent tax changes to Stamp Duty and mortgage tax relied should also be factored in to your calculations.

5. Never underestimate how serious an investment you are making
Your property will be governed by laws and regulations that you need to familiarise yourself and comply with. And there are many of them.
Just how hands-on do you want to be, or are you looking for an easier return on your investment?

One piece of great news for first-time landlords

There is such a thing as a much easier life for first-time landlords.
You can remove the stress and worry from managing your property – and you can also guarantee your rent each month.
With Khalil’s Rent Guarantee Scheme, we lease your property from you and we guarantee you will be paid the same rent every single month.
We take care of the maintenance of your property, finding tenants, managing tenancies and ensuring that your property is left in the same condition you leased it to us in.
All you have to do is sit back and enjoy the income. There are no void periods, there’s no uncertainty over your income and there certainly aren’t any worries about managing your property.
If you are looking at becoming a first-time landlord why not make it easy on yourself?

Phone: 01273 573960 Mobile: 07984 015669
Email: ahmed@khalilproperties.co.uk
Address: 124 Lewes Road, Brighton, BN2 3LG
www.khalilproperties.co.uk