Buy to let is a remarkable income investment esp. in
times of stock market instability. Whether you’re an established landlord or
your first buy to let property, there are ten essential things to consider for
a good investment.
Select the right property to let
Finding the right property requires efforts and
time. It also asks for critical local
market understanding. Firstly figure out the type of property you are looking
for; whether it is a house, office or a school building you should buy. The
property you choose must be situated accordingly for example the house should
be in a residential area with huge gardens and good schools, offices be in
markets with good transportation facility etc. Buy in a market you
understand.
Do
the math’s
Calculate the cost of the house and the rent you
will likely get. Mostly buy-to-let buyers want 125% of mortgage repayment
covering rent. Once you decide the mortgage rate and the likely rent you will
get, decide again whether you want to go ahead or not.
Being a landlord can be hard work. Tenant can calls
you any time to sort out problem in the house. But you can hire a letting agent
for this purpose. When hiring a letting agent you can either let only or full
management. Let only is cheaper.
Let Only: This type of agent will advertise the
property, find a tenant and collect the rent.
Full management: This agent will handle repairs and
maintenance, chase unpaid rent and carry out inspections of the property.
Paying
the Tax
Pay regular income tax on the rent you take like a
good citizen. May costs tax deductible. 
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