Investment centre
A practical starting point for landlords and investors.
The current financial climate is challenging for savers, and ongoing stock market volatility has made many people look elsewhere for more reliable returns. At the same time, the media is full of stories highlighting strong demand for rental property and the income landlords can achieve through buy-to-let investments.
So how do you go about becoming a landlord — or, if you already are one, how do you successfully build a property portfolio?
The guide below outlines some simple but essential steps to help you get started.
Know Your Market.
It may sound obvious, but knowledge is vital to successful buy-to-let investing. With the right information, you’ll be in a stronger position to negotiate a good purchase price, choose the right type of property, and keep costs to a minimum while maximising returns.
When viewing a potential investment, put yourself in the shoes of your tenant. Who are they likely to be? What do they need from a home? Which areas are most desirable?
For example, young professionals may prioritise good transport links, vibrant nightlife, and space to flat-share, whereas couples starting a family will have very different requirements. Understanding your target tenant will help ensure consistent demand and fewer void periods.
Understand the Numbers.
As a landlord, keeping on top of your finances is essential. Before spending any money, seek professional advice on how best to structure your investment. A good accountant can help ensure your portfolio is tax-efficient and that you are claiming all allowable expenses.
A solid understanding of basic bookkeeping will also serve you well. Tracking income, expenditure, and running costs from the outset can save you significant money and stress as your portfolio grows.
Remember: This Is a Business, Not Your Home.
Buy-to-let investing is about returns, not personal taste. The aim is to purchase property below market value where possible and maximise income potential.
Negotiation plays a key role, and experience helps. The more transactions you’re involved in, the better you’ll understand where savings can be made legitimately. However, negotiation should always be handled professionally — overly aggressive tactics can result in vendors rejecting offers altogether.
Know Your Own Worth.
As an investor, you’re often in a strong negotiating position. Like a first-time buyer, you typically don’t have a property to sell, making you attractive to vendors keen to avoid long chains.
This flexibility can give you room to negotiate a better purchase price — just be careful not to overuse the advantage.
Be Aware of the Downsides.
Careful planning can overcome many of the challenges associated with buy-to-let. If you manage the property yourself, you’ll need reliable tradespeople and possibly a bookkeeper or accountant.
Alternatively, many landlords choose to use a professional letting agent to save time, reduce stress, and ensure compliance with ever-changing regulations.
You should also budget for unforeseen costs and plan for void periods — times when the property is unoccupied and not generating rental income. Services such as The Property Centre’s Diamond Service can offer peace of mind by providing guaranteed rent.
Preparation Prevents Poor Performance.
Or, to use another familiar phrase: fail to plan, and you plan to fail.
We can assist with every aspect of building and managing a buy-to-let portfolio, including:
- Identifying suitable investment properties
- Advising on achievable rental income
- Providing guidance on buy-to-let finance
- Marketing your property
- Vetting and referencing tenants
- Managing the tenancy from check-in to check-out, including inspections
If you already own a rental property, you can register as a landlord with us. If you’re considering letting a property, you can request a free rental market appraisal. Alternatively, contact our lettings department on 01702 690 007.
