Are you thinking about investing in a buy-to-let property? If so, then you have probably heard from friends or family members about how profitable this option can be. You might have even read numerous reports about people that have made their fortune with this type of investment.
While true, it’s important to understand that buy to let properties can still come with certain challenges baked in. You need to make sure that you are aware of the issues that you can face and know how to deal with them the right way. Here are some key examples to keep in mind.
Expensive Repairs
First, you need to think about the issue of expensive repairs. If you have a buy to let property, it’s important to be aware that you can’t ignore repairs that need to be completed. Particularly, if you already have people living in the property. Doing so might be a breach of landlord standards and it could also cause an issue with health and safety. That’s why you need to do your best to prepare and in some cases avoid expensive repairs that can crop up.
One of the ways that you can do this is by arranging regular inspections on problematic areas. For instance, you might want to ensure that your heating system in the property is inspected at least once a year or even bi-annually. In doing so, you should be able to avoid a more expensive repair or replacement by guaranteeing that an issue is identified early on.
You should also think about having a rainy day fund for certain types of repairs. A couple thousand is a good amount to aim for with a fun like this. Alternatively, you will need a solid stream of credit. Remember, any repair will be your responsibility unless you can prove the damage was caused by the action of the tenant.
It’s also vital that you have a service that you can rely on if a repair does crop up. For instance, if you have a plumbing crisis, you need an emergency plumbing service ready to call. This is another way you can stop an issue becoming far more expensive than it needs to be.
Terrible Tenants
Another issue that you can run into with a buy to let property is a terrible tenant who constantly causes problems for you. This can be a financial issue or they might leave you with a lot of stress. You can avoid terrible tenants by ensuring that you are vetting them carefully before they move in. There are lots of different vetting services that landlords can explore. However, you need to make sure that you don’t cross the line here by discriminating against certain individuals who might be interested in staying at your property.
Aside from this, it’s worth taking steps to keep a positive relationship with your tenants. Generally speaking if you are proactive here, then they are less likely to cause you problems in the future. One of the ways that you can do this is by keeping communication points open and responding as quickly as possible. This is particularly important if you want to ensure fast replies from them when you get in touch.
Of course, if you hire a property manager, then you can avoid this headache completely. They’ll engage with the tenant for you.
Costly Mistakes
There are certain costly errors that you can make with a buy to let property. For instance, you might decide to use a property management service. This is a smart choice and can make things a lot easier. However, a service like this can be expensive. You need to think about getting quotes from a few different companies on the market and comparing them before settling on the right choice for you. This can help you avoid a massive and often unnecessary bill. This isn’t the only costly mistake that you can make with a buy to let property.
You need to avoid a property that is empty for a large period. An empty property will ultimately cause you to bleed money. The easiest way to avoid this is by making sure that you choose the right tenant for a long term lease from day one. If you are looking for someone for the property for the first time, then it is going to be worth hiring the right marketing service.
Legal Dangers
Finally, you need to understand the legal dangers that you can run into with a buy to let property. This can start from day one. For instance, you might buy a home and let it out with issues that are already present. The problem with doing so is that if these issues harm or endanger your tenants then you will be held liable. It doesn’t matter whether you should have been informed about an issue like this before the purchase was completed.
You can also overstep your mark with tenants. For instance, you might want to ensure that you regularly check in on your property. This is understandable and makes a great deal of sense, particularly if you want to avoid disputes about deposits. However, you do need to be careful about how often you stop by to inspect a property. While there is no legal limit on how many times you can check in, too many times can be seen as a form of harassment. This has been successfully argued in court by irritated tenants countless times.
To avoid this, you might want to think about hiring a legal advisor. They’ll be able to ensure that you always remain on the right side of the legal line. They will also be able to help with any disputes if and when they might crop up.
We hope this helps you understand some of the key steps that you can take to make sure that you know how to deal with these buy to let nightmares the right way. Remember, a buy to let property can be profitable but only if you approach it correctly.
