However to the untrained property magnate, it can be fraught with pit-falls and Steven shares his top ten tips to successfully get into property rental in Edinburgh.
1. Location – research your market. While it’s always exciting to uncover that new up and coming area, in this unpredictable economic climate sourcing quality residential investment, in established areas with a track record, can prove to be a sensible way to go.
2. Shop around for mortgage deal – depending on the scale of your investment, the mortgage offers will vary, so use a recognised mortgage broker to provide advice and guidance
3. Start steadily – if this is your first venture into property investment then give yourself a period of time to assess if it works for you. It may take a while to attract tenants, or other issues arising that affect the attractiveness of your property. Don’t overstretch your financial or emotional resources.
4. Speak to local estate agents – they have been in the business for years and know who is buying and renting in your local market.
5. Target your marketing – approach local student accommodation officers and other large employers to make sure they are aware of what you have to offer for rental in the area.
6. Due diligence on potential tenants – always seek and take up references on potential tenants. Consider carefully who you need to market to – if it’s a city pad with professional couples, it might not be the right environment to take on a young couple with five children.
7. Consider how you will manage your tenants. Do you want to be involved in the day-to-day minutia of rental? If not, then find a qualified letting agent to act on your behalf.
8. Insurance – like any business planning and continuity are paramount and you need to insure your investment against the unexpected.
9. Exit strategy – what are your next steps, do you want to increase your investments, or are you looking for a medium term return and then to sell the property? If the latter then the attractiveness of the property for resale must be taken into account.
10. Tenancy Deposit Scheme – sign up for tenancy deposit scheme which protects you and your tenants deposit in the unlikely event of dispute.
Steven Currie, Director at Murray & Currie Property Sales & Lettings said:
“Investors who can now search the market for attractive investment deals can have confidence that their property will be furnished with a quality tenant and at a rental figure that should give at least a 5% return.
“The smart investor is now taking at least a 5 year view and be confident that Edinburgh and its international reputation can return to some steady capital growth.
“With tenants also learning all dynamics of the market they too can enjoy the security that they can set up home in a buy to let apartment safe in the knowledge they will not be asked to leave within 6 months. This relationship between landlord and tenant is respectful as they appreciate they both need each other.”
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