Becoming A Landlord

Property investment, whether it's buying to let or buying to sell, is a business that can thrive and progress very easily. It takes a keen mind, with a good business strategy and a clear idea of what an investor wants to achieve. It also takes a person who has an eye for a bargain, and someone who can see the potential in a property.

If you have an interest in property you firstly need have some financial backing before you think about progressing. If you are a first time buyer it might not be possible to apply for a buy to let mortgage. However if you have the finances or already have equity in a current property a buy to let mortgage on a property is usually the best option.

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Becoming A Landlord
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Being a landlord means taking responsibility for the property or properties that you own and the tenants that occupy them. You can dictate the amount of rent applicable per month or per week, however you are also responsible for any repairs that need to be made i.e. a new boiler or a leaky tap.
If you decide to buy a property to sell on you are responsible for all the bills and other outgoings until you sell the house. When you sell a property to someone you cut all the ties that you have with the property, unlike when you decide to rent out a recently developed property.

It's important to make the right choice when deciding whether to buy to let or buy to sell. The money and time that needs to be invested into a property can prove to be excessive. And the property renovation process can be very frustrating. Sometimes people try their hand at property development without really knowing what they are letting themselves in for.

If you are buying a property at auction make sure you get as much information as possible and if possible have a survey done. It's also important to shop around for the right type of mortgage and the best mortgage lender, whether it's via an independent company or direct with a bank.

Also worth looking at is the landlord insurance or property insurance you might need. These are of major importance as they will cover the cost of any damages that may be sustained to the property whilst in your ownership.

Choosing suitable tenants can be difficult and you'll only know you have good tenants when they are already in your property. If you choose to advertise the property through a letting agent they can provide interviewing and application processes and credit checks. These methods will help narrow down the type of tenants you want to live in your property.

Once again, with letting agents make sure you search around and find a suitable agent that will advertise the property properly and have your interests at heart. Letting agents' fees can be pricey so choosing the right one is critical for the sale or rental of your property.

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Sophie Jones
About the Author:

This blog was written by Sophie Jones who moved into property development when she was made redundant from her job in marketing. She uses for her insurance needs.

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