Should I buy Property




All investments come with a risk, but investing in property falls into the low risk category, similar to an index fund. If you are building wealth for retirement, it can be an attractive option as it has the potential to provide a decent monthly income in the short term. More and more people are getting into the UK property market. Buying the property is the first step, but don’t forget you will now technically be a commercial landlord, and you will have obligations and duties to your residents. Thankfully, we will look at ways that you can take more of a back seat and let someone else take care of the day to day management issues.


Type of Property

The best type of buy to let  property is one that is low maintenance. Number one on the list are flats. Flats are self contained building that come in a range of sizes, so it is possible to buy a 2 or 3-bedroom flat. It should also be easier to find tenants for a flat as they do not have to worry about keeping the garden tidy. Protect your investment with commercial landlord insurance that will cover multiple properties


Empty Property

As your portfolio grows, you will at times have unoccupied properties in your portfolio. When you find yourself with an empty building, check the clause of any insurance policy. Must will have a clause that if the house is left continuously empty for a short term the insurance will be invalid. The term can be more than 30 days, but most will have a maximum of 60 days. In this situation you need to take out a specialist house insurance referred to as empty house or unoccupied building’s insurance.




Return on Investment

If you are not buying the property outright and arrange a buy to let loan, you will need to ensure that the expected rental income will easily cover your repayments. You may wish to consider taking out a loss of rent landlord policy. The price is usually a percentage of the rental income and will provide rent cover for a period of 12 months and if necessary cover costs of alternative accommodation if the property is inhabitable



Landlord Emergency Cover

As a landlord, you will have legal responsibilities to your tenants. These include providing electrical and gas certificates for any gas or electric appliances. Whilst not a legal requirement, have some sort of landlord emergency cover may be worth considering. This type of cover is aimed at providing emergency assistance. For example, if the heating system breaks down or pipes start leaking. Read the conditions and adhere to them, as if you for example fail to service the boiler, most  insurance companies will not take responsibility should it break down in the middle of then night.



Outsource Property Management

If your portfolio grows, and you come a multi property owner, you may wish to consider outsourcing the management side of things to specialise property management company, They will take  a slice of the rental income, but in return they will take full responsibility for property maintenance and finding new tenets. Do some groundwork before selecting and speak with other landlords that use their service and check landlord online forums for additional advice and feedback. Property is a major investment, and it must be managed professionally at all times.

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