If you’re looking for a lucrative business concept at the moment, you may wish to get involved with the property market. While prices had stagnated for a few years, we are now on the verge of a major bubble. That means it is possible for savvy business owners to make a killing if that act quickly enough. You have two main options when making a living from the property market. Firstly, you could opt to purchase homes at auction, renovate them, and sell them on for a profit. Secondly, you could buy properties and rent them out. For the purpose of this article, we’re going to focus on what you need to do to become a landlord.
Most new landlords will look to purchase houses at auction. However, that often means a lot of renovation work has to take place before they can be handed over to potential tenants. So, it’s sometimes a good idea to get in touch with all the estate agents in your hometown. We decided to contact Palmer Snell for advice. They told us they often have properties on their books that need to be sold quickly, and so prices are usually a little lower than we might expect. Those are the best homes to purchase if you’re looking towards becoming a landlord.
Funding your purchases
The main reason people are cautious when it comes stating a property business relates to finance. Most think they need the money to purchase homes, but that isn’t the case. High street banks offer specialist landlord mortgages that require a smaller deposit than the standard ones on offer. That means you could easily afford to start your business with only a few thousand pounds in the bank. Of course, some people opt to take out a business loan, but you should avoid doing that unless you have no other choice.
Thankfully, tenants are easy to come by these days. House prices are quite expensive at the moment, and that means many average families simply cannot afford to buy at the current time. While that is bad news for them, it’s a great revelation for anyone trying to make a living from this marketplace. To rent your homes as quickly as possible, you should consider advertising on social media websites and at local estate agencies. They will take a small commission from you, but at least you’re certain to have someone paying rent pretty quickly.
Dealing with the business side of things
When it comes to the ins and outs of running your new business, it’s a good idea to get in touch with a trained and experienced legal professional. While you could handle all the paperwork and regulations without assistance, it would take a long time and prove quite boring. For that reason, it’s always best to leave it to the professionals. Again, you will have to pay for their services, but most people feel it’s worth the expense.
We wish you the best of luck with your new property business and hope to see you making a mint by this time next year.
All the best guys!