Potential landlords
Buying a property to let
Over the last 5 years we have seen a boom in the property market, both in residual dwellings and rental lettings.
Many people have entered into the rental market either by choice or circumstance.
The main drivers for the boom in this market have been:
- Long term investment portfolio planning (relatively low risk investment with favourable yield)
- Windfall or inheritance
- Those unable to sell an existing property, so let
- Need to purchase a home for a child at university or an elderly parent
- A desire to supplement or supplant existing income
- Generate a regular monthly income stream.
But many when entering the market, fail to consider the drawbacks, such as:
- Initials costs of preparing the property for let
- The legal obligations and failure to comply with regulations can cost financially and in extreme cases result in imprisonment
- The cost of finding tenants
- Time and effort spent in dealing with tenants
- Periods of time when the property is not let
- Costs of ongoing maintenance of the property
- Any rental profit made is taxable.
Property can be both challenging and financially rewarding, is being a landlord right for you?
