How to buy a building and rent it out
How to buy a building and rent it out?
Owning a buy-to-let property can be a great investment for you to make. It is a long-term way to make money and, when done right can be a great way to boost your income.
The only thing to keep in mind is that if you are new to buying rental property then you are going to need to take the time to learn about how to buy a building and rent it out. This can be confusing if you are new to property investment. This is why we have put together our guide on the process and the main things that you need to consider.
Get yourself a buy-to-let mortgage
Not everyone is lucky enough to be able to have a big pile of cash lying around, just ready to be spent on the property. For those people who need to raise the cash, a buy-to-let mortgage is going to be needed.
Different rules need to be taken into account for a buy-to-let mortgage. Not only for the eligibility of who can apply but also for the repayments that you are going to be making too.
For the most part, you are going to need to be a homeowner who has a good credit record.
The mortgage that you are going to be able to obtain is going to depend on the lender you choose. These mortgages will usually be offered as interest only, this means that you will only be asked to pay the interest back each month, not the actual loan.
Find a property
The next step is to find a property (although you are likely to be looking for this at the same time as you are trying to secure a mortgage). You have to remember that you are not looking for a property for you, but a property for your potential tenants to live in instead.
You will need to consider the type of tenant that you are trying to appeal to; and in turn what type of properties they are going to want to rent and live in.
If you are lucky, you may be able to buy a property that they can move straight into, once you found the tenant that is. However, you may also find that your budget will only stretch to a property that needs some work completed before it will be ready for your tenants to move into.
Learn what it takes to be a good landlord
Once you have a mortgage, a property and a tenant all secured, there is only one thing for it. You need to become a landlord. This is more than just a simple case of renting a property out, you need to understand what your tenant’s rights are and also what your responsibilities are as a landlord too.
You need to consider key aspects of letting a property out including tenancy contracts, deposit protection schemes and of course, longer-term property management too.
You will also need to make sure that you take out insurance, which will then protect you as a landlord; as well as the property that your tenants are living in.
It can be a little complicated to buy a building that you are then going to rent out to tenants, however, this shouldn’t put you off of investing.
You just need to make sure that you consider everything that you need to do and think about and take your time.
Before you know it, you will have a property to rent out and you will have a brand new income revenue too.
Also Read: Best Areas for Buy to Let