This is where most developers end up. Once executed, this can prove to be money for old rope. That may be bit pushing the point, but here I can teach you some really useful tips on how to let with very little fuss. The essential element is to first consider the previous chapters as just as important as the monthly cheque you receive from your tenants. In effect the two are very much related. So re-read those chapters before you get to this exciting chapter on how to but to let.
My 10 Steps to success
I’m going to make this very easy by revealing my 10 steps. Follow this and you will succeed, ignore a step and you may struggle. Here goes…
1. Find the right area to buy into and make some appointments with local letting agents. Normally estate agents will be able to offer help with letting too. Many estate agents also cover lettings, as it is a lucrative market to be in.
2. Once you’ve picked their brains to assess the state of the lettings market (and discovered what type of properties are most in demand) you can begin the house hunting game. Get several viewings under your belt to get a feel of the market.
3. Talk to mortgage providers early on in the game to ensure that you find the best deal. If you have a personal financial adviser, they may well do this service free of charge, if they do, use this free service, as it may save you money and time.
4. Once you’ve found a suitable property put in an offer and be patient. What you might think is a silly offer may prove to be a bargain, remember you can always increase your offer. The worse the vendor can do is reject your offer. The agent should be able to advise on what the vendor may accept.
5. When your offer on the property is accepted you’ll need to get a licensed conveyor or a solicitor to deal with the legal and financial paperwork.
6. This is the step that can seem to go on forever, the survey and searches. You will also need to get it valued. Then you’ll be in a position to finalise your mortgage arrangements with your finance lender.
7. Who will manage the property? Once you’ve been handed the keys you’ll need to decide whether you are happy to manage the property yourself, or if you want to hand it over to a letting agent.
8. The chances are that the house will need some work doing on it, so it’s best to get the workmen in there as soon as possible. You will find our buying to let profit calculator useful at this point.
9. If you’re planning to let the property furnished it makes long-term sense to invest in solid/ robust furniture. Try looking at car boot sales, local house clearance companies or local auctions. They are an ideal way of sourcing good solid furniture without putting costs through the roof.
10. Before your tenants take control of the property, do make sure that they are clear on the terms of your contract to avoid any later possible complications.