You may be tempted to step into the world of renting a property out. Either the place has come to you via an inheritance, you have some money to invest or there is enough equity in your own home to gain a deposit on a buy to let. It would be wise to seek out a financial advisor as this piece can only give you a few details.
- You will need to know how much rent to charge to cover costs. If the Buy to let has a mortgage attached to it then the lender will want to see you’ve got enough to cover it and more. If your figures don’t match theirs then they will not lend.
- Consider the costs of a letting agent. Unless you want to engage in finding the tenant, running the checks and having to deal with Home inspection software like that from https://inventorybase.co.uk/ then fine but it can be complicated.
- Keep the tenant in the property for as long as possible. Everytime one leaves you have to start the costly business of finding another one. Plus, if the rent isn’t coming in how is the mortgage going to be paid on it (this can be an legitimate question a lender will ask so you would be better off having one in line before you apply if you can.)