Investment

by: Karl Hopkins006
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How about becoming a landlord?

Most of us dream of earning more money, but it never seems to become more than a dream. But have you ever thought about becoming a landlord? Property investment is a great way of supplementing or even replacing your income. Buying a house or an apartment and then renting it out can give you a steady income from rents, and once your property is up and running with a tenant you can find yourself with very little to do to keep the money coming in. But where do you start? How do you make a good property investment and become a landlord?

The first thing to do, once you know your budget for buying a property, is to work out where to buy. Location is all important in the property market, so if you want a good return on your investment make sure you pick the right place. Check transport links, schools, recreational and shopping facilities – ask yourself what kind of person is likely to rent your property. If you are planning to buy a one bedroom apartment, a young professional might be your target market, and might want facilities such as nightlife or public transport to work areas. If you are thinking of buying a house, a family might want nearby schools and parks, or parking facilities.

Check out rental prices in the area you are interested in– are they high enough? Find a similar property to the one you are considering buying and check what the rent is – will this monthly figure give you a good return on your investment? If you can’t find a similar property with rent as high as you want to charge, you are unlikely to be able to get tenants at your rate. They will go somewhere else! Make sure you can be competitive and still get a good return.

Once you have pinpointed an area, you need to find the property. Perhaps you are interested in buying a property that needs some work, or maybe you do not want to have to get the paint and overalls out at all but start looking for tenants straight away.

Ask yourself who you are hoping will rent from you, and who is the main market in your area. If the area is full of young couples looking for a place to live, or is a retirement haven, this should have an impact on the type of property you buy and the rent you can charge and so the return on your investment.

You should also consider whether you will enjoy being a landlord. Will you be prepared to deal with complaints and problems, or organise work on the property? If not, you could consider employing someone else to deal with this kind of thing for you.

So, if you think that becoming a landlord and earning some extra income on a property investment is for you, remember to make sure you do your research first. Then wait for the rent to start rolling in!

About the Author

Karl Hopkins is author of this article on Investment property. Find more information about buy to let here.

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