If you have some money to invest and you’re looking for a business opportunity that could yield significant profits, perhaps you should become a landlord? There are thousands of UK people who simply cannot afford to buy a house outright, and the banks are very cautious about handing out mortgages. That means you could make a lot of money in a very short amount of time if you go about things in the right way. While there are lots of articles online explaining how to become a landlord, we thought it would be wise to make things as simple as possible.
You should take a few moments to read through the whole of this post before starting your research. We will do our best to explain everything in layman’s terms to ensure there’s no confusion. Contrary to popular belief, becoming a landlord is not difficult. So long as you follow this guide to the letter, you could achieve your goal in a matter of months.
Ideally, you will already have enough money in the bank to purchase your first property. However, there are things you can do if that’s not the case. For instance, most high-street banks now provide specialist landlord mortgages. They offer lower interest rates that you might otherwise receive. The trouble is; you’re going to need a lucrative business plan and perfect credit history to get one.
You have two main options when looking for properties. You could either purchase commercial builds or family homes. The latter usually provides a more stable return, but the former could offer higher profits. You just need to look at each option in turn and decide which is most-suitable for you. If you’re buying family homes, you can get much lower prices if you attend auctions in your chosen areas. Just make sure you select a location where rental prices are high enough for you to cash-in.
You’re going to need a special type of insurance when dealing with rental properties. Luckily, there are many different providers that specialise in that at the moment, and so you only have to perform an online search to find a reputable firm. This insurance will cover you in the event of any issues at the property. Your tenants might leave the bath running and cause damage to the floorboards, or they might accidentally cause some structural issues. Either way, landlord insurance will guarantee you don’t have to pay the repair costs out of your own pocket.
Dealing with legalities
There are lots of different laws and regulations concerning landlords, and so you need to make sure you’re operating legally. To do that, you’ll want to employ the services of a dedicated private or commercial property solicitor. Again, you’ll find lots of specialists online.
Now you know how to become a landlord in the fastest time possible, you could have your business up and running by the end of the year. We wish you the best of luck and hope to hear about your new venture becoming successful very soon.