Demand for rental property in Fulham remains high, which presents a great opportunity for landlords and property investors. However, to make the most of your investment, it is crucial you weigh up the opportunity in the correct manner. Here are six things to consider when investing in property:
First of all, being a landlord is a major responsibility and it involves a lot of effort. While the idea of additional income sounds great, you need to consider if you can actually spare the time to do all of the tasks that tenants expect from landlords.
You also need to consider the legal responsibilities of a landlord and make sure you can meet the health and safety requirements that are expected of the property itself. Before you put serious thought into your investment, consider what being a landlord actually entails and whether this is the right role for you.
By this stage you should be confident about what the role of a landlord consists of but you also need to think about yourself. Do you have the time to act as a landlord and can you fit in this new role around your existing work and life balance? Bringing in additional income is always going to be of benefit but if it is going to impact on your quality of life, can you spare the time to be a full-time landlord?
If you are investing your money in property, you are looking for a positive return but this can mean different things to different people. Investing in property and then renting the property out can bring in monthly income, but you may need to spend a large amount to get you to that stage, so you may have to wait a while before your investment sees a return.
If you are looking for a small level of income in the present day while holding an asset for the future, investing in property is a smart move that will pay off, but make sure you have done your maths and calculations first before making that investment.
Linking in with your aims for the property, do you know what demographic of tenant you want to serve or what type of person is looking for the property you want to buy? The type of tenant plays a huge role in the success or failure of any property investment so make sure you know the different types of tenant and what they want from their rented accommodation.
Before you make any form of major investment, you need to focus on your finances. This means improving your credit score and being certain about your budget. You should also look at the costs involved with buying a home (which will be higher than the cost price of the property) and then you should review expected rental yields.
Before you make any investment, being sure about your finances is crucial. If you are not too confident with reviewing your finances, make sure you receive specialist help and support.
When you are planning ahead, it is best to focus on the worst case scenario as opposed to the best case. Can you afford to be a landlord if your property lies empty for a couple of months? Can you cover the cost of repairing damages? Do you know how to deal with disputes with your tenants?
Being aware of what could go wrong for a landlord is key to starting off on the right footing!