We’re hearing all over the news that our national economy is now on the rise. This means 2014 should be a pretty amazing year for business, and anyone brave enough to take on a new project could be handsomely rewarded. As with anything though, the hardest part is usually identifying the most promising and lucrative idea, but don’t stress too much because the perfect opportunity could be staring you right in the face.
Those with lots of money to invest (or, at least a decent chance of obtaining extra mortgages) would do very well to look at the property market. You see; thanks to councils all around the country running schemes that have let working class people purchase their previously state owned property, there’s a severe lack of social houses options. Though this isn’t good news for those looking for a place to live, it should be music to the ears of any landlord, as it means there’s even more demand for privately rented properties.
So, if becoming a landlord and building a property portfolio seems like something you might be interested in this year, take a few moments to read through the rest of the information in this post, and I’ll do my best to highlight some money saving tips which you might find incredibly useful.
Buy Properties At Auction
Although the homes you find at auctions may need a little work before they’re suitable for renting on the private market, this is still the best place for new landlords to grab a bargain. Often, we find that properties sold at auction go for less than 70% of their real value, meaning you could purchase a £100,000 home for less than £70,000.
Don’t Use Estate Agents
In most instances, estate agents are good at finding potential tenants and dealing with all the paperwork involved in moving. However, they also take a healthy commission, and so you’d be better to leave them out of the equation. Instead, look for tenants yourself and have all paperwork drawn up by your solicitor. Though this may cost a little more to begin with, over time you’ll see it’s the cheapest way of dealing with the issue.
Shop Around For Insurance
Contrary to popular belief, landlords require a slightly different form of insurance than other people, and this is to help pay for any upkeep to the property or damage that may occur. Still, prices vary incredibly, and so you’ll need to shop around to ensure you find the best discount landlord insurance before signing any contracts or parting with any cash.
Use Social Media To Advertise
Being as you’ll probably try to rent the property out without the help of an estate agent, you’ll have to think about your advertising options. Whilst some will cost hundreds of pounds (newspaper etc), others are completely free and so shouldn’t be overlooked. If you simply join a few locally based Facebook groups and post some information, you’ll soon get lots of interest in the properties you have to rent.
After following my advice, you should save a serious amount of money when becoming a landlord for the first time this year. Just remember, in this game, it’s vital you keep moving forward and expanding your portfolio.
I hope that helps!