Landlords are experiencing increased return with rising demands for
rental property from tenants.
The
gross rental return before taking into account the cost of insurance,
maintenance, management, varies between 4%-8%. Capital appreciation
is set to match if not exceed inflation.
In
many cases, monthly mortgage repayments are now measured against the
rental income, and not income alone. Normally the rent needs to
cover the repayment by 130%, Appiedaize will advise on a monthly rent
based on the current market.
Recognised
by mortgage lenders as experts, Appiedaize can advise on potential
investment property taking account of our detailed local knowledge and
whether demand is for say two bedroom flats or four bedroom houses.
Buy
to Let properties incur the same costs as buying a house for owner
occupation i.e. legal expenses and stamp duty. You will want to take
into account with your calculations insurance for the building, contents,
rental protection insurance (if required) and insurance to cover legal
expenses. It is worth bearing in mind to look for what the tenant
will want from the property in terms of location, accommodation etc., not
what you yourself would prefer to live in.
- Always furnish, fit out
and decorate to the appropriate standards, to attract the best tenants,
pay particular attention to the kitchen and bathrooms.
- Always
contact Appiedaize to discuss any questions, queries, or assurances you
require around current legislation.
- Always think of the various
scenarios and the what if, when Buying to Let, which is normally a medium
to long term commitment.
- Always take account of the local market
conditions and consider the predicted growth trends in the area.
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At
Appiedaize, we strive for continuity of occupancy, ensuring maximum return
for the Landlord. However, it is worth building in a contingency for
void periods within your calculations.
Allowable
deduction against tax on rental income include, insurance, agents fees,
repairs, maintenance, gardening, plus fair wear and tear.
If
the property is to be let furnished, the furniture needs to be suitable
i.e. old second-hand furniture is not appropriate for a new two bedroom
house and must always comply for the current fire regulations.
