Becoming a landlord is a popular option for those with money to invest. To maximise the potential of being a landlord, choosing the right property is crucial. Ideally, you will look for a property which requires minimal repair and is low cost and easy to maintain.
Initially, decide which market you are aiming at, as your property should be able to cater for their requirements. For instance, a one bedroomed apartment may suit a professional couple, but is unsuitable for a young family.
Do some research on the property market, so that you are aware of the type of property which is popular with renters. You will also get a good idea of the budget you will need, and any mortgage requirements.
A CeMAP qualified mortgage adviser will be able to help you find the most suitable mortgage. An adviser can also explain how a buy-to-let mortgage works, particularly as lenders require your rental income to cover the mortgage payments. You may also want to know more about tax changes which are soon to be introduced.
Speak to a lettings agent to find out more about rental in your desired area. A lettings agent will be able to tell you which properties are in demand, and which are left standing empty. If a particular type of property has a low supply, you may want to consider investing in this type of home. The agent will also be able to tell you more about the type of renter in that particular area.