Talk to Student letting
officers build rapport so they promote your property above
others. They too can give you good advice on demand, i.e.
where, why, how much etc.
Buying Privately?
With more and more people
turning to the internet to source suitable investment property
for sale and for sellers looking to save on selling agent
fees, more people are having the opportunity to buy and
sell privately. The main difference being that you will
liaise directly with the seller of the property. This may
be via email or telephone. Viewings will be arranged directly
between the buyer and seller and the negotiations regarding
the price will be dealt with directly between the buyer
and seller.
There are a few simple steps
to remember:
Make sure you have done
your research
Source a good buy to let
mortgage provider and make sure that your own personal credit
file is clean.
If you are unsure, then
you can request a copy of your personal credit file at
www.experian.co.uk
Once you have agreed an
offer for the investment property for sale with the vendor,
you will need to appoint a solicitor and exchange solicitor
details with each other.
At this point your respective
solicitors will then begin the necessary legal work on your
behalves.
Contact your buy to let
mortgage provider and confirm the purchase price and loan
amounts required.
A surveyor will then need
to visit the investment property for sale to carry out a
valuation of the property and a rental assessment. Some
buy to let mortgage brokers can arrange this on your behalf.
Other buy to let mortgage companies will advise you when
this will take place. However, it is worth bearing in mind
that if a buy to let mortgage provider is a fully packaging
company then they may be able to reduce the timescales that
it takes for your formal buy to let mortgage offer to be
issued.
Whilst waiting for the
valuation report on the investment property for sale to
be returned, use this time to complete all the legal paperwork
that you solicitor will forward to you for completion and
the application forms which will be forwarded to you from
your buy to let mortgage provider.
If the valuation report
comes back and is satisfactory, you should then receive
your buy to let mortgage offer shortly afterwards. On occasions,
you may be requested to obtain specialist reports which
may include a structural engineers report, damp and timber
report and coal mining report. These are easily obtained.
Please go to specialist
reports.
A copy of the buy to let
mortgage offer should go directly to your solicitor
Your solicitors will then
liaise with each other regarding suitable exchange and completion
dates and will arrange to do the necessary completion paperwork
for you.
Preparing to let
This is an investment
and cashflow is the key factor. Stick to neutral colours
that will go with anything. For example, a red sofa might
not match a green carpet, however, all colours look good
on beige.
Carpets - light beige looks great when clean. Light colours
make room look lighter, brighter and bigger. They also encourage
cleanliness and are easy to justify cleaning when a tenant
vacates. Look for felt backed bleach cleanable carpets which
do not require underlay. Replace carpets every 3-5 years,
clean every tenant change and debit from damage deposit.
Check with the local letting agent whether there is more
demand for furnished or unfurnished property in the area.
To get a quote on a landlord furniture pack click
here.
If
letting yourself
Join your local
Landlords association
www.rla.org.uk
This is the easiest way
to keep up with legislation and to obtain advice on getting
your paperwork right.
Other landlords in your area will be keen to share good
and bad experiences. Learn from their experiences rather
than making your own mistakes.
Application form
Obtain full details including
names, addresses and contact numbers of referees and emergency
contacts. Also obtain previous addresses, NI numbers, employer
details and proof of earnings. This makes life easier if
you ever need to track down an absconding tenant.
If possible, fill in an application form at the prospective
tenants home. This will at the same time allow you to see
how they look after it.
Fees
Charge a fee to tenants
of around £100 for completion of tenancy agreements,
referencing, inventory etc.
Deposit-take 5 - 7 weeks
rent plus one months rent monthly in advance
Tenants often cancel standing
orders on the month prior to final payment if this happens
you still have some money to cover damages
Check in/out
Purchase
a Landlord Inventory - include everything including
starting colour, condition of walls, ceilings, doors, fixtures
& fittings etc and get it signed so you can prove damages
when the tenant vacates. The more detail the better, even
include the colour of light switches and door handles and
what they are made of. Comments like "carpets have
just been professionally cleaned" or "walls are
freshly painted" will also help to prevent disputes
on checkout.
Ensure that you arrange a check out inspection and make
sure the tenant is present get them to sign to agree to
any damages and/or required repairs.
Complete utilities meter checks and ensure the incoming/vacating
tenant signs to confirm meter readings.
Inform the utilities companies and local authorities in
writing of incoming/outgoing tenants and any applicable
meter readings
Tenancy Agreement
You will need to purchase
a tenancy agreement. This will protect you and your
tenants. Rather than selecting a do it yourself basic agreement
off the shelf, buy to let 4 sale have a downloadable solicitor
prepared agreement.
Look
after your tenants They are a valuable asset to your investment
property!!
Happy tenants will respect
your property and will refer other potential tenants to
you.
