Research recently provided by the HSBC bank shows that rental properties can still in some areas provide yields of 7.82%. Three of the top 10 buy to let hotspots are in the north, including Blackpool, Manchester, and Liverpool.
This is positive news for buy to let landlords and other potential property investors who may have been dissuaded from investing in property following the negative press of late. HSBC go on to say that 23 of the top 50 yields provided offer significantly more than is available from traditional savings options.
Buy to let landlords need to be aware that entering into the buy to let market will not produce quick returns and those with little experience should obtain professional advice and guidance from the outset. The following are essential and not options;
A professionally prepared assured shorthold tenancy agreement;
A full credit reference using a credit reference agency as well as obtaining references from former landlords of the proposed tenant;
An inventory and statutory checks such as gas safety certificates and electrical safety certificates.
Possessions by buy to let lenders continue to increase and any would-be investors should ensure that they take appropriate advice on any lend.
Stephensons can provide a tailored service for any buy to let landlords with the cost of an assured short hold tenancy agreement starting at just £35 plus VAT.
By Commercial Partner, Louise Hebborn