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THREE OPTIONS FOR YOUR INVESTMENT PROPERTY BEYOND RENTAL

investment property

If you have an investment property in a popular area, it can seem like the route to your fortune is easy. All you need to do is make a few adjustments to the house, find a tenant, and then enjoy your new status as a landlord.

 

Of course, the reality is… somewhat different. While it might seem like a nice idea, the truth is that renting a property out is not without its difficulties. Even if you hand over the majority of the rental control to an agent, that still means you’re making a dent in your profits, and you might not be any more guaranteed a seamless landlord life anyway. With changing legislation always an issue and landlords high on the target list for national ire, there’s plenty of reasons why the idea of being a standard landlord isn’t going to work well for your situation.

 

So – you have a property, or at the very least thinking of investing in one. You don’t want to go down the conventional route when it comes to letting it out. So what can you do with it?

 

investment

 

Option One: Nothing At All

 

It’s not the norm, but it does happen: you own the property and then, aside from an annual inspection to ensure everything is still ticking along as it should be, you leave it alone.

 

This is an expensive option, without a doubt. You’re not going to have an extra stream of income to help with the mortgage and tax burden, so you’d have to be financially sound to even be considering it. On the plus side, it does mean you don’t have to worry about tenants damaging your building or jumping through the various legislative hoops – which if you prefer a worry-free life, might make it worth considering.

 

Option Two: Short-Term Lets

 

The so-called sharing economy has become all the rage in recent years, and there’s no reason why your property investment shouldn’t be a part of it. Without the constraints a traditional landlord-tenant relationship might place on you, short-term lets offer you a chance to increase your income without the hassle.

 

The platform that introduced the entire concept – Airbnb – is still overwhelmingly popular, and you may find that Airbnb management services make it easier than you ever would have imagined to run such a letting. On the negative side, you’re not going to be guaranteed a steady stream of renters the way you would be a more conventional tenancy agreement, but that also means that you won’t be dealing with an endless stream of problems, too.

 

Option Three: Live In It

 

Of course, just because it’s an investment property doesn’t mean that you have to have other people live in the house at all. If you pool the money you have available from your home and what you have to invest, you could buy a truly remarkable house which you can then downsize from in retirement – and earn yourself some money at the same time.

 

This does mean that you’re going to be using – and thus potentially damaging – the house as a family home, but on the plus side, it guarantees that you will always be able to keep an eye on the property.

 

So which option do you think might be for you?

 

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3 THINGS THAT MAKE YOU A GREAT LANDLORD

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If you fancy a change of career or want to start a new hustle on the side to make some extra cash, getting into property can be a great route to go down. Despite the housing marketing certainly not being what it was thirty years ago, buying now rather than later can certainly hold you in good stead for the future.

 

House prices are rising all the time, so on paper, even if you bought a house and only made some minor upgrades, it is reasonably likely that you could still sell it for profit some years down the line. But not everyone buys property with the intention of selling it.

 

The concept of buy-to-let properties is a popular one, particularly since many younger people, in particular, are having to rent rather than buy. Landlords can make a decent living from renting out their properties, and provided that you get on with your tenants, it can be quite rewarding too. However, there are a few things you need to know before you jump headfirst into landlord life, so you can do the very best job you can.

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Secure a good standard of property



Sadly, the country is not famed for having a good selection of rental properties. The rental market has been blighted by a host of sub-par properties and rogue landlords, who prey on the desperate need for housing that so many people have. This doesn’t mean to say that you can’t buy investment properties such as older houses, or a so-called ’empty shell,’ and rent them out. But, you need to be prepared to make the home livable first. Make sure the property is cleared of any damp, that the electrical and heating systems are all in order, and that you have secured flooring and appliances. Failure to do so could mean that you are breaking the law, and you could end up garnering a bad reputation as a landlord.

 



Keep copies of EVERYTHING



Even if your property involvement is purely a side hustle, it’s still important that you treat it like a business. This means doing everything by the book and keeping copies of every document that relates to the house you are renting out. Gas certificates, rental agreements, deposit information and utility forms all need to be on your records in case you ever come into a dispute with your tenants. It can also be worth having physical copies AND electronic versions of everything so that you know you have the back-up if you need it.

 

Be available


You are the only point of contact your tenants have regarding anything to do with their house (unless you have rented your property via an estate agent). So, with that in mind, you need to be prepared to be in semi-regular contact with them and be willing to be around if an emergency occurs. Share contact details with your tenants and always try and get back to them within 24 hours if they have a query – sooner if there is something seriously wrong. Landlords do sometimes have a bad reputation, but by following some of these rules, you can have a harmonious relationship with your rental properties and your tenants.


 

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