So can anyone be a landlord? Basically, yes! As long as you have the financial ability to purchase the property in the first place and keep up the repayments of course.
In our experience, becoming a landlord is not as daunting as you might think and it can be a great way to invest some of your hard-earned money. Buy-to-let mortgages are relatively easy to come by and, with the help of some sound accountancy advice, they can give you a good return on your investment.
As with any property purchase, it’s worth having a good understanding of the local area and market before you commit to buying anything. It is also worth thinking about the options available for your situation – are you looking to achieve the best possible monthly income (yield), or would you prefer something with greater potential to increase in value over the longer-term (capital growth) but might initially provide a more modest income? These decisions will affect the type of property you choose too.
Lettings agents can be very helpful in finding tenants, setting rental value and putting together tenancy contracts etc. And if dealing with the everyday issues of owning a rental property worries you, they can also take over the entire management of the process for a monthly fee. Just sit back and let the rental income roll in!
Be mindful however that this is a taxable income, so you do need to consider this when completing your tax returns. A number of charges including stamp duty, legal fees and maintenance costs can be offset against this income so it’s worth getting some help with your accounts to reduce that income tax bill as much as possible. Check out this article, which gives some good tax tips.
So if you’re thinking of becoming a landlord for the first time, why not see if ScoutBee can help you through the process and find a successful investment property in Hampshire?