1. Making the right investment

2. 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?

3. 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?

4. 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

5. 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

6. 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

7. 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

8. 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

9. Make a move Talk to a mortgage advisor Instant results
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10. 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