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GROWTH OR YIELD: WHICH BUY-TO-LET STRATEGY IS RIGHT FOR YOU?
"At least one in six people on The Sunday Times Rich List owes their wealth to property or the world of home ownership in some way". Those are the words of Robert Watts, the man who compiles The Sunday Times Rich List.
Building a successful lettings portfolio is an exciting route to financial freedom, and picking a direction for your buy-to-let business ultimately comes down to two choices: capital growth or rental yield.
When it comes to choosing between them, you'll find strong proponents of both whenever you ask the question. For some, capital growth is the be-all and end-all of being a landlord, while others extol the benefits of immediate income and higher yields. You'll also find many successful landlords operating in each camp, with some even managing to combine both strategies.
Comfortable retirement, financial freedom, a change of career, supporting children, expanding a business, earning passive income and being your own boss are all motivators for becoming a landlord. Whatever your goals, building a sustainable portfolio of buy-to-let homes can make them possible.
Whether you're looking to increase the size of your lettings portfolio, add a second strategy to your current one, or even if you're just about to go looking for your first buy-to-let investment, this week's blog has something for you.
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HIRING CONTRACTORS: A LANDLORD’S GUIDE TO FINDING TRADESPEOPLE YOU CAN TRUST
Whenever you ask someone if they know a good contractor, you’ll never be far from a tale of woe: the plumber who never turned up; the electrician who bodged the job; the builder who overcharged and left a huge mess.
It’s taken us many years to build a circle of reliable contractors, and we’ve had plenty of upsets along the way. Unfortunately, even the good ones go bad, get too busy, or simply disappear, so we keep our eggs in more than one basket to ensure we have a backup plan.
One thing that makes the life of a managing agent easier is that we look after multiple homes. Our calls take priority because of the amount of work we provide through regular maintenance, compliance checks, general repairs and, of course, the odd emergency.
It can be more challenging to build close relationships with contractors when you’re a landlord with a single rental property or a small portfolio, but with our checklist of tips, you’ll find it easier to spot the ones you can trust.
And if you’d rather someone else did all the legwork, why not ask us to take care of everything for you? Call us on 0151 280 4047 or drop us a line at YOUR EMAIL to see if we’re a match.
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THE NICHE LANDLORD: PERFECTING A LETTINGS FORMULA FOR REPEATED SUCCESS
Specialise or diversify? That's a big question for many landlords when it comes to expanding their portfolios, and if you look around Google long enough, you'll find arguments for both.
You don't have to have a niche. You could choose a wide spread of property types across multiple locations, but you'll undoubtedly become more knowledgeable with some sort of specialty, and you'll find it easier to manage your portfolio.
Of course, every property will give you a yield, whether it's flats over shops, ex-local authority homes, swish new developments or classic traditional houses. There's a demand for all of them, and we're never going to run out of families, professional couples, sharers or single people to live in them. However, there's definitely an edge in picking and perfecting your market.
Many of our landlords choose to specialise in a particular location and type of property because it makes their lives easier. By developing an expertise in their chosen marketplace, they know exactly what attracts the tenants they want, which gives them an enjoyable and profitable business.
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SOLD WITH TENANTS: YOUR LANDLORD CHECKLIST FOR BUYING A TENANTED PROPERTY
As a fast and chain-free way to start or add to your lettings portfolio, buying a tenanted property can be an attractive proposition.
Usually, when you buy a property to rent out, you’ll need to have it cleaned, fix any repairs, get it on the market, show people around, take up references and create a tenancy agreement before seeing any income. But that’s all taken care of when the property you buy already has a tenant.
However, you’ll also inherit every outstanding responsibility of the previous landlord, and you need to be sure that the property and tenancy are all they seem. Do the figures stack up? Are you happy with the tenant? Will you be taking on unresolved problems or disputes?
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ACCIDENTAL LANDLORD? ALL YOU NEED TO KNOW TO MAKE IT A SUCCESS
Not everyone sets out to be a landlord, and becoming an accidental one is more common than you might think.
An accidental landlord is someone who becomes a landlord by circumstance rather than by plan, and it can happen for several reasons. You could be relocating for work, moving in with your partner, or having trouble finding a buyer for your current home. Or you might have inherited a property.
Being a landlord can provide you with an unexpected passive income stream, but there’s a lot to know before you get started. Lettings legislation is complex, forever changing and comes with plenty of responsibility, so it pays to be informed to make your transition from property owner to landlord as smooth as possible.