Severn House, 1 Severn Road Canton, Cardiff CF11 9EB Tel: 029 2034 5191
WHAT YOU NEED TO KNOW IF YOU BUY
A RESIDENTIAL PROPERTY TO LET
Buy a property to let is not a pastime, game, or hobby.
Buy a property to let is not the fastest way of making money. It is in fact the opposite. It is a slow way of making money but is the safest if you know how.
A lot of people will be glad to sell you investment properties. Some of them are genuine and some are only interested in taking your money and off-loading their problems on to you. Some people may persuade you that it an easy way to make money, beware of these.
Buy a property to let is a business and like any other business it has to be run professionally.
The letting property business is one of the most regulated business and landlords can be fined if they break the law.
You do not have to use an agent to rent your property or to collect the rent for you, but you do have to devote a lot of time and effort to the business.
Once you are sure that you can do this and providing you do not expect to make a fortune from the beginning, then you can go ahead and go into the business of buy to let.
If you intend to buy a property to let whilst you are running some other business and do have not time to look after the property or you live far away and you can not take care of the running of the property you have no option than to appoint an agent.
If any problems arise or any building work is required or any appliances require renewal the agent has to instruct the first available company to go ahead and carry out the work required to keep the tenants satisfied and to avoid any environmental notices served to them.
The cost of the repairs may have been cheaper if you were in charge of the property as you may have known a builder or done the job yourself.
Also if you appoint an agent their commission varies from 12.5% to 15% of the rent collected. It depends on the volume of work they do. They also charge you for finding a tenant and for drawing up a tenancy agreement and for the inventory of furniture.
If you wish to run the business yourself you can save money and you will always be in charge of any situation that arises.
If you decide to run this business yourself or give it to an agent the following notes will be very helpful.