IN A rising property market it is tempting to cash in by buying as quickly as possible. But when you are considering a buy-to-let property, there are more issues to consider than there would be were you simply buying for yourself.
In other words, careful planning is essential. Before you choose a property and arrange the finance to purchase it, you should be carrying out your own market research - checking local conditions, analysing rental demand and so on.
Research the market
You could employ a specialist letting agent to do this for you - the Association of Residential Letting Agents (ARLA) will be able to help find a suitable company.
But if you decide to do it yourself, you will need to gather information from a variety of sources in order to assess local demand for rented accommodation. Useful sources will include your local authority housing department, estate agents and the local press.
Keep an eye on the local job market, too - companies moving to the area will attract employees looking to rent. You could also contact the larger employers in your area to find out their views on demand for rented accommodation.
Target tenants
With an understanding of the local rental market, you will be able to make a decision about the type of tenant you are hoping to attract. Consider your own preferences - would you rather be dealing with families, a group of housemates or single professionals? Whatever the case, your house should have features that will appeal to your target group so if you are aiming to rent to professionals, you will do best with a one or two-bedroom flat.
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