Wednesday, 22 May 2013

Rental property investment

Image: freedigitalphotos
If you have some money to invest, and would like to see a better return than the interest offered by banks, buying a property to rent out is something worth considering. You could become a landlord and use the rent as an income while waiting for the property to increase in value. You don't have to buy the property out right; it is possible to get a buy-to-rent mortgage if you have a decent-sized deposit.

Right now there's a strong demand for houses and flats to rent because it's hard for people to get a mortgage. Rents are higher than ever before because of the number of would-be tenants fighting for a decent place to live. Longer term property always increases in value, even if there is a short-term dip, so it's a fairly safe investment. Rental income is also a good alternative to a pension for some people.

The rental market will stay strong because people always need a place when they are temporarily in a different area to home, like students at university. Young people also want to move out of their parents' home before they are ready to get a mortgage. Lives suddenly change too, leaving people with a need for quick accommodation fixes, like when a couple divorce. These events will always occur.

Getting good renters and landlords together can be difficult. You will want someone honest, who pays their rent on time and who respects your house. Tenants also want someone they can trust, who will maintain the property and who will leave them to enjoy the place in peace.

There are three ways you can rent out your property. You can get a professional agency to completely take over everything. They will advertise for a tenant, run credit checks, take the rent each month and organise their own team of workmen to carry out maintenance. This, of course, will cost you more money.

Another option is an introduction-only service. The agency runs the advertisement, completes a credit check, and takes the first month's rent and deposit. After that you take over everything. The tenant gives you the rent and calls you if something needs fixing.

The third option is to completely do things yourself. This isn't for the light-hearted because it isn't very easy to run a credit check and often the more desirable tenants won't proceed without an agency. This is the cheapest way of managing your house, however, so you keep more of the income. If you are renting out just a room in your own home, then this is often how things are done. You will obviously be there to see when repairs need to be done, and collecting the rent is easy.

Cricklewood in North London would be a great place to purchase a buy-to-rent house. There are plenty of opportunities here and renters find this area perfect to commute into the centre of London. Locally there are busy high streets filled with good shops, great places to eat and fun things to do. Nearby towns like Willesden Green, Brondesbury, Dollis Hill and Kilburn are equally good areas to invest in.

If you need to find 1 bed flats for rent in Cricklewood, visit our website to check out the range we offer. Learn about Paramount estate agents and our great service.