RAH Magazine March-April 18 final (1)

Renting out property
It’s a business
not a love affair
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No one loves a cheap skate. It’s
fair to say that you will very likely
be financially better off in the long
term by spending more at the
outset. It doesn’t have to be “highend”,
just reasonably good quality.
For example, when buying paint
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Another thing to consider when
initially kitting out your property is
the decor, carpets, curtains et cetera.
In general terms neutral colours
usually work best since they appeal
to the masses. And they’re easy to
coordinate with when you’re new
go for a good brand like Dulux as
tenant wants to “make it their home”.
opposed to your local DIY store’s
Unless you’re a bit of an expert at
own brand. A brand like Dulux will
interior design, it’s probably best to
last much longer and stand up
keep it neutral.
to things like cleaning off scuffs;
unlike cheap imitations which will
invariably wash off with the scuff!
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If you’re interested in the buy
to let business for the sake of
investment and financial gain, then
it’s important to “keep it strictly
business”. Don’t take a viewer not
wanting to move in personally or get
annoyed when a tenant decides to
move out.
3We know you’ve heard it
before but location, location,
location. Tenants, especially
busy professionals, love a
good location. It needs to be
convenient to transportation
(the nearer to a train station
the better) as well as shops and
increasingly cafes and coffee
shops. And if it’s convenient
to schools, green spaces,
restaurants, cinemas or the
theatre then even better.
When making your purchase discard the
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things that might be attractive to you if you
were going to live in the property. What
matters is selecting a property that will be
attractive to the masses.
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When you rent out your property ensure
that it’s fitted out to a good standard. Good
quality fittings will not only attract good
quality tenants, they will also attract better
rental values. And as the years go by you
will find yourself spending less on repairs
and upgrades. Be warned though we’ve
seen many a landlord pay dearly for cheap
fittings/materials and/or cheap labour.
6Another example is washing machines. Buy a cheap washing machine (let’s face it, you can
get them very cheap these days) and don’t be surprised if you only get a year or two out of
it before you’re spending on (not so cheap) repairs. Spend a bit more on something like a
Bosch and you can typically expect to get 10 years out of it – and probably with no repairs at
all. The Bosch certainly works out cheaper in the long run, so works out far cheaper! It’s also
a better machine and more of a pleasure to use, and tenants appreciate these things. (And
we all love not having to arrange a time to let engineers in to carry out repairs and wait in for
them.)
8Be extra careful when buying leasehold
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property. Check the terms of the lease very
carefully. And be even more careful about
buying “new builds”. Especially if they are
brand new. We see so many problems with
bad workmanship that landlords are left to
deal with. We have clients who have spent
Use a professional ‘match maker’.
months in frustration at trying to get the
Finding the right tenants for your
builders to put right problems.
property can be time consuming and
stressful. By using an experienced
letting agent to find and vet tenants
you’ll make your life a whole lot
easier. You will also benefit from their
Keep on top of the financial side of things.
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expertise and advice.
One idea is to have a totally separate bank
account for your property dealings where
payments in and out can be easily accounted
for. Ideally have three months worth of rent in
the account at all times to cover unexpected
costs, repairs and voids.
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