Making the right investment

Is now a good time to invest? Some things to consider before investing: Property prices – are they going up or down? Mortgage market – how confident are lenders? Interest rates – how soon will they be rising? Available capital – do you have funds available or finance you can leverage?

Considerations before purchase How are you going to acquire the property? Standard estate agent sale Private sale Auction sale Know the area What is the area demographic? What are the local amenities? How does the property compare to neighboring properties? Are you familiar with the local authority?

Considerations before purchase Know the market Who is your target market? Who would be interested in the property and the area? What are your ideal tenants looking for in their home? What is the standard rent level? Is there potential to add value to the property? Renovation Extension Energy efficiency Redecoration

Considerations before purchase Are there council imposed restrictions? Article 4 Directions (England) – you have to seek planning permission for any development to your property, including creating an HMO Selective Licensing (England and Wales) – some councils require a privately rented property to be licensed by them Additional Licensing (England and Wales) – a license above and beyond a standard HMO license How could they affect you? This could reduce the number of lenders willing to offer a mortgage on the property The lenders could increase their terms and conditions This could add additional costs to your budget

Considerations before purchase Is the property leasehold? Check the lease What are the restrictions? It is quite likely that there will be restrictions (known as “alienation provisions”) which require, at the very least, notice in writing with the payment of a notice fee Do you need prior consent to let? There may need to be prior consent from the Residents’ company or if that is not required then there may be limitations on the type of tenancy that can be granted and the term Consider your insurance Insurers can restrict the type of tenant you let to Failure to adhere to the provisions in the lease can have difficult and expensive consequences for the leaseholder

Means of managing a property There are a number of options you might consider for managing the property, depending on your experience, skills and time. Using Letting and Managing Agents If you decide to get help with managing your property, there are three potential options: Letting only Letting and rent collection Full management Self-management This option is for landlords who are confident with the rules and regulations of the sector It saves the cost of using an agent However, it requires a considerable investment of time

Things to remember Conduct due diligence Understand your risk Create a business plan and a realistic budget Know your market and the rules and regulations governing it Research, research, research

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The value of membership Being a member of the NLA can make it easier for you to run your business and be a successful landlord Some of the advantages to being a member include: The NLA Telephone Advice Line – help with practical issues NLA Branded Services – discounts on essential services such as mortgages, insurance, repossession and tenant checks Recognised Suppliers – we do the work for you by finding reputable and trustworthy suppliers from solicitors to tax advice to boiler repair Online Library and UKL magazine – Keep yourself up-to-date on the changing rules and regulation Events – meet your local NLA rep and other landlords in your area or take a course such as accreditation or Portable Appliance Testing For more information or to join today, visit www.landlords.org.uk/membership