ARLA advises buy-to-let landlords to scope the market
Property investors looking to enter the UK buy-to-let market for the first time have been advised to carry out plenty of research beforehand.
In an article for the Financial Times newspaper, the Association of Residential Landlords set out a number of tips for new landlords.
The organisation recommended looking in depth at the local property market conditions before committing to a purchase.
"The rental market does suffer ups and downs and behaves very differently from region to region," explained operations manager Ian Potter.
"It's critical that you select the right property in an area you have researched in detail," he remarked.
Once an investment has been made, landlords need to make sure they have the right mortgage in place.
ARLA recommended taking out a specialist buy-to-let mortgage and to compare a number of providers in order to get the best deal.
Landlord property insurance should be another priority, the organisation added. As well as buildings and contents insurance, landlords will also need liability insurance and protection against tenants defaulting.
When registering with a residential letting agent, it is important to choose a licensed company that is a member of a reputable industry organisation, ARLA added.
"Also check that any funds being held by an agent on your behalf are protected under client money protection schemes," said Mr Potter.
Other things to consider include carrying out full credit checks on potential tenants before they move in and signing up to deposit protection schemes, which has been mandatory for all landlords since April 2007.
Social media