Purchasing a buy-to-let investment in the spa town of Harrogate can be a good investment, or it can be a mistake in the making. It is all down to how you approach the potential rental property and how you market it. We have put together a small comprehensive list of 5 essential steps you need to make when renting out to tenants in the area of Harrogate.
- Consider your intended tenants
Are you thinking of letting out long term? Short term for the holiday season? To families or elderly couples? As Harrogate is a tourist town, seasonal lettings are a wise choice, however it is important to consider the type of tenant you want to appeal to. The size and location of the property will attract different tenants and although you have the ultimate decision, if it ticks the boxes of one family with two small children, you can guarantee more will also apply for tenancy. Marketing your property at certain types of tenants is just a good business strategy, and one you should take full advantage of.
- Setting your Rental price
Looking at similar properties of a similar size and location in the Harrogate area and in neighbouring towns will help you to set an accurate price. Considering your intended tenants as well will be a benefit as certain types of tenants will only have a set budget so it is important not to overprice your rental. Be optimistic when setting your price, yet realistic. Don’t go too far overboard, otherwise you will have no interest at all.
- Are you Self-Managing or delegating to a Letting Agent
There are advantages and drawbacks to each decision, but ultimately it depends on how much responsibility you can handle and how much time you can spare for each rental. Being a landlord is almost considered a full time job, particularly if anything goes wrong as it is the landlord’s responsibility, so you need to be able to handle that. However letting agents will have their own fees for property management, which you will need to pay, so it is all about whether you’d rather save time or money, not both.
- Drawing up the Agreement
Take your time, enlist the help of a professional and make sure both parties have read the terms and conditions and agree. Starting off a tenancy without a proper tenancy agreement is a recipe for disaster, as how will you cover yourself in emergencies? Tenancy agreements are for the benefit of both parties, so make sure you have a properly drawn out, official agreement signed by all parties.
- Maintaining a Professional Relationship
Everyone has had those stories to tell about nightmare landlords and terrible tenants, but it is important that you maintain a professional relationship at all times. In the event where a tenant accuses you of misconduct, or contests a schedule of condition, that professional demeanour is incredibly important. If you lose your temper it will only serve to be used against you in court, so maintaining a professional, respectful demeanour is essential.
In some cases it may just be a disagreement but some people will try to agitate the other party in order to make them lose their cool, which is when all your credibility goes out of the window. No matter how immature or inappropriate the other party is being, remain professional at all times and you can’t go wrong.
Of course this is only a worst case scenario, but it is important to be prepared just in case the worst happens. In many cases you should have no issues renting pout to reputable tenants, if you have done your background checks properly, and you can start to build a worthy investment on your Harrogate rental home. Just remember that buy-to-let investments area long term commitment, so choosing whether or not you will manage it yourself is essential. Good luck.
Article provided by www.bradley-mason.com, a Chartered Building Surveying Practice offering a full range of building consultancy and project management services throughout the UK.