When you decide to buy a rental property, there are numerous things you need to consider to ensure a return on your investment. At Homes4Harrogate, our most recent event gave comprehensive advice and guidance on making property work for you. Following on from the event’s success, here are our top tips to help you get the most from your rental property.
HAVE A PLAN
Before you look for a property, set a goal and stick to it. Decide what you want to achieve and then build your strategy for getting the most from your rental property.
If you’re looking for capital growth, you’ll need to find a property that has a solid chance of selling for more than you paid. There’s no crystal ball to tell you whether property prices will rise or fall, and you’ll need to look into the local property prices – both past and present. In terms of the future, make sure you’ve done your research into market trends and predictions.
On the other hand, you might be looking to focus your energies on rental yield. In which case, you’ll need to do a full appraisal of the local rental market. Is it saturated? Or is demand still high? Ideally, you’re aiming for a yield of at least 4.5%. In recent years, Harrogate has seen rental yields as high as 6%, making it an extremely attractive place for landlords looking to invest.
FUNDING
Where is the money for your investment going to come from? Do you have savings? Or are you taking out a mortgage? You MUST know the answers to these questions. If you’ve got options when it comes to finance, take a look at the current mortgage rates. If they’re low, you might be wiser to leave your savings where they are and take advantage of what the bank can offer.
SLUSH FUND
Getting the most from your rental property will, from time to time, involve investment. There’ll be times when you don’t have tenants, or when repairs are required. Make sure that you’ve got enough in the bank to cover your
mortgage and all other possible unforeseen circumstances. New central heating systems don’t come cheap…..
MANAGE THE PROPERTY WELL
Make sure you fully understand what’s involved. You must keep up to date with rules, regulations and changes to the law to ensure that you’re not prosecuted or fined, and that your tenants are safe and secure. Check in with your tenants, charge fair rent and ensure that repairs are carried out swiftly and properly. Of course, we would say that having a fully managed service from a reputable agent is the way to go – we’re letting agents after all. But it’s true. Managing a property is hard work, and problems arise at all times of the day and night. We don’t mind that; it’s what we do. But if you have a full-time job, and find that you’re missing out on time with friends and family, chances are you’re not getting the most from your rental property.
There are so many stories about the demise of the buy-to-let market. But as property expert Rob Bence comments; “Investing in property may have become a little more complex, with changes to tax relief rules and increases in Stamp Duty Land Tax now in play. But property remains the safest form of investment and it is absolutely still possible to prosper from it”.
If you’d like to talk to us about the services we offer please call 01423 637637, we’d love to help you get the most from your rental property.
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Welcome to the Mumbler property page. We have created this page to provide Mumblers with relevant, up-to-date information about the local property market. From help on all aspects of buying a new home to advice on remortgaging your existing property or even renting a property in the town, you can read all about it here.
Your new Mumbler property team; the two Andrews, Stewart & Sarah are always happy to answer any questions you have. Over the coming weeks and months they will be producing a series of short articles aimed at answering the most common property related questions.
If you have a question or query about any aspect of property then please email it to stewart.amos@2plan.com Any suggestions that are used will receive a box of chocolates or bottle of wine from the Mumbler property team.
Best wishes Stewart Amos, Sarah Johnston, Andrew Hill and Andrew Kempston- Parkes
T: 01423 637637
E: Email Sarah Johnston MARLA, LLB
Sarah Johnston is a residential letting expert covering Harrogate and the surrounding district.
She prides herself on offering a modern, flexible and personal service to landlords and tenants including pro-active marketing on social media and extensive property management.
Being fully Arla Propertymark regulated and with a background in Law, Sarah is well placed to advise on the ever changing legislation and regulation affecting landlords and does this with regular free landlord events and blogs.
After spending eight years managing a portfolio of over 1,100 properties in Harrogate Sarah set up homes4harrogate and hasn't looked back since.
Sarah is very happy to be part of the Mumbler community and looks forward to helping everyone from landlords about to embark on their buy to let journey to experienced portfolio landlords.
E-mail address sarah@homes4harrogate.co.uk
T: 01423 528528
Our percentage of local sales is very high for our size and our turnaround is swift. We've spent the last 25 years getting to know every inch of the Harrogate district and its property market, and we study it constantly. That knowledge, and our unique sales approach – always friendly, never pushy – means we’re unusually good at finding buyers.
It doesn’t mean we charge more – in fact our rates are very competitive. We’re able to do that because we’ve kept our team small and stuck to our principles of honesty, attention to detail and proper customer care. So while we have all the selling tools that modern estate agents have at their disposal, no home we sell is ever lost in the crowd, or treated second-best because we have a larger property on our books.
We give you our full attention and make sure we’re with you at every step. In short, we actually care – after all, this could be one of the most important transactions of your life.
e-mail address hello@andrewhill.co
M: 07810 108165
Stewart Amos is a mortgage advisor based in the centre of Harrogate. He advises on and arranges mortgages from a comprehensive range of mortgages from across the market for all sorts of clients. From those looking to take their first steps on the property ladder to those with a portfolio of investment properties. He also helps arrange the cover put in place to ensure families would be financially secure should the very worst happen; life insurance, critical illness cover etc.
Having been to see a large number of Mumblers over the past year he understands the importance a personalised service can make. He is happy to meet clients in their own home at a convenient time, unfortunately for him that's usually in the evenings after the kids have gone to bed!
As a thank you for all the kind recommendations on Mumbler, Stewart is happy to waive his usual broker fee to all members of the group. Mention that you're a Mumbler to qualify.
Email Address: stewart.amos@2plan.com
Your home may be repossessed if you do not keep up repayments on your mortgage.
2plan wealth management Ltd is authorised and regulated by the Financial Conduct Authority. It is entered on the Financial Services Register (www.fca.org.uk) under reference 461598.
T: 01423 789 111
M: 07791 505 116
E: Email Andrew Kempston-Parkes, MRICS
Andrew Kempston-Parkes is an experienced member of The Royal Institution of Chartered Surveyors (RICS), having worked as a Chartered Surveyor in the residential property industry for over 20 years.
Over the years, Andrew has worked with a large number of clients to help move their house purchases forward efficiently and with ease. Or, when properties haven't been quite up to scratch his vigilance has helped clients to make an informed decision on whether to proceed.
Harrogate has been his home for 20 years and he lives near the centre of town with his partner and their two children, Matthew and Sean.
Feel free to get in touch with Andrew if you have any questions regarding the types of home surveys available and which is right for you.
Email Address: andrew@kempston-parkes.co.uk
