If you are a buy-to-let investor or would like to become a property investor you may feel bogged down by all the recent changes to the letting’s industry such as new compliance laws, the levy on stamp duty and all of the other tax changes concerning letting out property.
Despite all of these recent changes renting out property still makes good financial sense, and savvy homeowners are realising this and are renting out their properties on a let-to-buy basis. This enables property owners to not only cover their expenditure but also make a good renting yield as well as enabling them to keep their property as an asset for the future. This shift in people doing let-to-buy has been referred to by many as the emergence of the reluctant landlord, those people who in the past, especially around the financial crash in 2008 couldn’t sell their homes so had to rent them out instead. However since that time homewowners have realised that if they can keep their property on a let-to-buy basis it can potentially bring some great rewards.
Before you think about renting out your property you will need to engage the services of a good letting's agent, preferably one which is ARLA, Association of Registered Letting Agents registered. As they will be able to help you through the process, which includes:
Establishing how much rent to charge
Finding suitable tenants
Help you to understand your obligations
Drawing up a lease – including putting your tenants deposit in a registered rental deposit scheme
Keeping your properties void periods to a minimum
Advice on any aspects of renting out your property including landlord insurance
This is when an experienced letting agency such as Intercounty can really help, as they can take care of all of the issues concerning compliance, and can assist you with your tax liabilities.
If you have a mortgage with your current property then you will need to make sure that your lender doesn’t have any issues with you renting it out.
For more information about becoming a let-to-buy investor why not pop into your local branch of Intercounty or call our team on 01279 655243.