Top Budget-Setting Advice for New Landlords

Posted by Lucy James on Mar 11th, 2013 | Comments Off

Being a landlord is both a financially and emotionally rewarding experience, but if you don’t know how to set a budget for the best buy to let property, then you could end up spending much more money than you are bringing in. Here is some top budget-setting advice that any landlord or property developer needs to take into account when purchasing a property with the intention of renting it out.

Mortgages

Getting a mortgage is the first step towards investing in a property. A buy to let mortgage is the loan that you can get from a mortgage lender which can help you pay for the whole purchase fee of a property.

If you can find a mortgage lender that will give you the amount you need, there will be some rules in place such as an age limit (usually between 25 and 75), repayment plan and purpose of use. The reason that you are applying for the mortgage in the first place is because you are intending to rent the property out once you have bought and made any necessary changes. If you change your mind and want to sell it on, you are breaking a mortgage lender’s terms of use.

You can find a mortgage online by comparing prices and terms of different mortgage companies but it is important to remember that each lender will have different repayment and mortgage application rules. In terms of budget setting, make sure that you are signing up to a plan which you find realistic and affordable so that you can plan the rest of the finances for the property.

Neutral and Well Sourced Decor

Although good quality carpets and top of the range wallpaper might look good, after renting the flat or house out, you may find that there is a significant amount of wear and tear. Keep your colour scheme neutral (magnolia walls are a popular choice with many landlords) as this enables tenants to come into the property and personalise it in their own way.

Get hard-wearing carpets and buy paint in bulk where necessary i.e. if you are purchasing more than one property. Also make sure you can source your kitchen units and bathroom suites from cost effective and reliable companies.

Maintenance Budget

Once you have spent money on decoration, remember that some may still be needed to pay for boiler breakages, maintenance workers, call out fees, and any other issues that need fixing. As long as you set some money aside, these maintenance costs won’t hit you too hard!

About Lucy James

Lucy James writes for, and on behalf of mortgage brokers and other financial advisers at 'Find a Mortgage Online'. Get in touch if you have a topic you would like Lucy or one of the experts at the company to write about for you.

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