Buy to let

What is buy to let?

Buy to let investing involves purchasing a property with the intention of renting it out to tenants. The aim of buy to let is to generate income from rental payments, and ultimately make a profit when the property is sold.

The process of buy to let

Buy to let is a popular investment strategy in the UK. It involves buying residential property with the intention of renting it out and earning income from the rent.

The first step for any potential buy to let investor is to establish their affordability and decide on how much they can comfortably afford to spend on a property. This should include factoring in solicitors’ fees, refurbishment costs, insurance and other associated expenses. Once an amount has been established, investors must then source finance options; this could be mortgages or loans secured against the future rental income of the property.

Once finance agreements have been put into place solicitors will undertake legal searches to ensure that all parties involved are fulfilling their contractual obligations correctly. Additionally solicitors will also draw up the tenancy agreement to ensure all parties involved understand the responsibilities and rights of the landlord and tenants.

Once solicitors have completed their due diligence investors can then begin to look for a suitable property, aiming to ensure that it is in an area with high demand for rental properties and will be able to generate sufficient income. Once a purchase has been made, investors must start filling out any necessary paperwork such as tax returns or license applications before they can start renting out the property.

After solicitors have completed all legal searches, contracts are signed and licenses obtained, landlords can now advertise the property to potential tenants. Once a tenant has been found they should conduct credit checks and reference checks before signing the contract.