A property can be a fantastic investment and a cost-effective way to earn some extra cash. But first, you need to find the right property, letting agent and mortgage lender and insurance for the project.
You need to check whether it’s even legal to let out the property with your current mortgage and rental agreements. While a property is a great business to enter, it also requires a lot of time, money, and effort.
You need to research current rental values and whether it is an excellent time to let a property. Look at future market trends, the rules around letting your property and your own finances.
Can you afford to work abroad and rent out a property? Bear in mind that you might have to renovate the rental place first and pay a letting agent to manage it.
If you have decided to go ahead with your property investment, here are a few things you need to do.
Find a property manager
You need someone to find tenants, check on the property, conduct viewings and manage maintenance repairs. You won’t be able to do emergency maintenance repairs from another country. Hire a letting agent or property manager to take care of your property while you are away.
Make sure they are adequately qualified and equipped to cope with the demands of managing a rental property. You can focus on your work abroad and rest easy, knowing your rental home is taken care of.
Draft up a tenancy agreement
A property manager can draft up a tenancy agreement for you, order an EPC if needed and do maintenance checks. A letting agency can also do these tasks and deal with any correspondence with potential tenants.
However, the letting agency fee will take a chunk out of your profits from the rental property. Make sure you can afford to hire a professional and research a few agency rates before hiring anyone.
Check the tenant into the property
Managing a property is stressful – especially when tenants are behind on payments or damage the home. Landlords and agencies carry out quarterly inspections to make sure the property is in good condition.
The property manager may need to do maintenance and repair work, deal with legal issues and re-market the property to find new tenants if the currents ones are leaving.
You will have to pay income tax
Unless your property earns less than £10,000 per year, you will have to pay income tax. Rent is a form of income, and you will be taxed on it. Do your research and factor tax into the total cost of running a rental property.
The real estate industry can be extremely profitable if you hire the right people and manage your properties. well.
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