As a parent, it’s possible that you might be finding things tricky at the moment. Juggling home schooling with a career has become something that many mums and dads have been trying to get right, but it’s not been easy.
The children may be due to go back to school in March, but there are plenty of parents that have realised during the latest lockdown that their jobs don’t fit in with their family life as well as they once did. From rethinking current working hours to setting up new businesses, there are many options for those who have experienced this revelation over the last few months.
If you’re one of the parents trying to come up with business ideas that work around your family life, it’s worth considering setting up a property rental business. Here’s a look at what’s involved.
Think about the property type
What type of property would you like to rent out? Are you thinking of letting an apartment to a couple or a larger property that you can turn into a house share for young professionals?
There are pros and cons to consider with each property type. For instance, if you do opt for a house share, you’re likely to see a high turnover of tenants as they move out to be with partners or change job roles. Should you decide to rent an apartment, you’re more likely to have tenants who opt for a longer lease.
Fund your investment
Once you have an idea of the type of property you want to rent out, you can think about how you’ll buy it. A major consideration when setting up a buy-to-let business is how you’ll fund your first property purchase. Do you have savings that you could put towards a deposit? Maybe you have the money to pay for the property outright? If not, you’ll need to speak to a mortgage adviser and take out a mortgage.
Many landlords use the money from the rental payments they get from tenants to cover the mortgage cost. However, there is a risk that your tenants won’t be able to pay or there may be some time between tenants where the property isn’t filled so you’ll need to find the funds to cover the mortgage in these cases.
You’ll also need to factor in any renovation costs. There may be some updates you need to make to the property before you rent it out for the first time. You’ll also need to cover the cots of any upkeep and be aware of wear and tear so that you know when to replace carpets or curtains for example.
As with any property purchase, you’ll need to look at the types of insurance you’ll need. You’ll need to protect the building and the contents, too. It’s also worth looking at policies that will cover you should you find your tenants can’t or won’t pay.
Consider using a letting agent
You might want to take charge of your first buy-to-let property, but as time goes on you might find it easier to hand the reins over to a letting agent, especially if you decide to buy another property to let. As your portfolio grows, choosing a trusted letting agent to manage finding tenants and overseeing inventories and property check outs can become a worthwhile investment.
Whatever property you want to start with, this has the potential to be a lucrative opportunity for you and free up valuable time for you to spend with your family.