TOP TIPS TO CONSIDER
Consider your long-term goal. It may be that you will buy a property to live in once you retire; you could want the highest income immediately, or maybe you are looking for capital appreciation. It is essential to strike a balance between yield and capital. Discuss the pros and cons of letting furnished or unfurnished with your agent. We find that the most significant demand is for unfurnished, which involves lower ongoing refurbishment costs. Occasionally, corporate tenants require a furnished property, which can result in a higher rental figure, but this is not the norm. Carefully choose the location of your property and look for features such as a garage, parking facilities, central heating, double glazing, etc. When viewing a property, it might be wise to ask yourself whether you would accept the standard offered if you were a prospective tenant. An agent would expect the fabric of the building, together with all plumbing, gas and electrics, to be in good order. When decorating, use neutral colours, as these will create a blank canvas for the tenants to work from with their belongings. If refurbishing the kitchen or bathroom, again use more traditional designs/colours, which will not date. Hard-wearing, good-quality carpets are also a good investment, as this is where wear and tear take its toll.
Remember, if buying a leasehold, expect ground rent and maintenance charges to be your responsibility. However, if reasonable, these can be built into the rental value. Landlords are always responsible for building insurance and any owners’ contents. The tenants are responsible for insuring their personal belongings. If living or intending to move overseas, consider the tax implications. Although Whites will not handle your tax affairs, we can supply the correct form to enable you to apply to the Inland Revenue to receive rent without tax deduction in the first instance. Under the current legislation, all agreements are deemed to be an Assured Shorthold unless otherwise stated. This is the most common form of agreement, the usual exception being where the tenancy is taken on behalf of a company, i.e. a company let. 0722 336528 7 Remember, this is a business undertaking; try not to get too emotionally attached to the property and be prepared to invest further money later towards maintaining a high standard.
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