Landlords Mustn’t Let their Heart Rule their Head when Purchasing Property
Buying a property as a landlord requires a completely different mindset to purchasing as a homeowner – the key difference being that, as a landlord, you must not let your heart rule your head.
Becoming a buy-to-let landlord is a business move and the objective of your investment is to make a profit. As with any business decision, it’s important to leave your emotions at the door – something that can be particularly difficult when purchasing a property.
Of course, it is important that you are happy with the location of the property, the layout of the interior and think it is a suitable place to live, but it shouldn’t be your ideal home. As long as the property is likely to be someone’s ideal home, that is all that matters. Although this mindset can be difficult for first time landlords, it is the key to a stress-free and successful let.
With tenants spending longer periods in rental housing than ever before, amenities such as local schools, transport links and employment opportunities are becoming more and more important.
Before investing in a property, it’s essential that you research what tenants want, which locations are in high demand and where you can achieve the highest rental yields. It is also a good idea to speak to local letting agents, as they are in the best position to advise you of not only what types of properties tenants are looking for, but also if there are any gaps in the market.
Investing in property is a long-term investment and does not always give off instant rewards. Therefore, you should make sure that the property you buy is aligned with the wants and needs of the tenants you are hoping to attract, and that there is sufficient demand for rental housing in that area – this way, you will minimise the risk of costly void periods!