Investing in property is a great way to make your money work harder for you, whether you are using company profits or setting up a landlord business. However, you have to go about things in the right way. Today, we’re going to take a look at the three most important areas you need to consider before investing your profits or savings into property. Check them out, and make sure you don’t buy a duff…
Location, location, location
Location is vital when you are in the property business. Let’s say that you are a business and renting out office space to other companies. You’ll need to be near excellent transport links, have a car park, and also facilities nearby.
Alternatively, if you are going into the buy-to-let business, then you need to decide who you want living on your property. If it’s families, you should consider finding somewhere with good schools nearby, and safe roads.
However, you might want to maximise your income potential by renting out to students. If so, there will need to be a few nightlife options and good transport links to the local colleges and universities.
Whether you are renting out space to business or a home to a bunch of students or a family, it’s important to choose your tenants wisely. Things can get tricky further down the line if you don’t have a proper screening process involved. Think about running credit checks, and make sure there is some form of guarantor if you are renting to students. They can have financial issues, and it can sometimes be hard to get them to hand over what they owe.
However, it isn’t just the tenant’s ability to pay that you need to think about. You should also consider who they are when you furnish your property. For example, if you are planning on renting out space to startups, they will probably need desks, Wi-Fi connection, and a meeting room. A more established business might have their own furnishings to bring with them, so would prefer an entirely empty space.
Similarly, if you are renting out to students, they will probably need a furnished property. Families, on the other hand, will usually have their own stuff to bring with them, and would prefer unfurnished.
You will also need plenty of protection in place. Your first step is to look into online landlord insurance comparison services. Find yourself the best deal you can that will give you the cover you need as an owner. There is plenty that can go wrong, so unless you want to be met with huge bills in the event of an accident, you have to get the right cover.
You should also think about security – especially if you are renting out to businesses. If there is a burglary, and it is found that the building’s security systems were at fault, that’s going to cost you a pretty penny.
It’s a lot of responsibility, sure. But, if you have everything in place to give you the right protection, it will help you keep most of your profits from your rental income. Good luck with your new landlord status!