5 Common Buy To Let Mistakes To Avoid

5 Common Buy To Let Mistakes To Avoid

B uying a property to let in Bristol can be a positive and potentially very worthwhile endeavour. As lenders keep a tight control on mortgage lending in the post-financial crisis property market, more people are turning to renting, rather than buying. Good news for those in a position to buy properties to let out for rental income.


However, if it’s your first time investing in a Buy to Let property, there are a few pitfalls that could potentially sour the experience if you don’t do your homework. Here are 5 common mistakes that you should take care to avoid.

1 – Not researching the area: When looking to purchase a property to let, many inexperienced buyers are driven by price. The property you’re looking at might be a great bargain … but is it in an area that has a high rental demand? Or is the price so low because it’s in a bad area, or one with few amenities, or poor public transport links? Do your research by looking at local papers such as The Post and property letting adverts, and speaking to letting agents who know the market in and around Bristol.

2 – Not choosing the right property: It’s easy to let your emotions rule when looking at properties to let. Always remember: you’re not looking for your ideal home, you’re looking to make a reasonable, logical investment in a property that will provide you with a healthy rental income. It’s important to take the condition of the property into account, and how quickly you can get it into a fit state to let — if it looks like it will take you two months to upgrade, renovate and refurnish, that’s two months where you’ll have no rental income, but will still have to make your mortgage payments.

3 – Not doing your sums: Many inexperienced property investors underestimate the costs associated with buying a property to let. You have to account for the property deposit, survey and solicitors’ fees and any mortgage fees, as well as renovation and furnishing costs. Then there’s letting agent fees and insurance payments, as well as the Buy to Let mortgage payment. Remember your property investment is a business, and treat it as such — there may be personal tax implications and it can be a good idea to employ an accountant.

4 – Underestimating the commitment involved: Some people see Buy to Let as a nice, easy way to supplement their income. But unless you employ the services of a letting agent (who will take a percentage of your rental income) then you need to be prepared for the running around that comes as part and parcel of letting a property — which can involve such delights as arranging emergency repairs at odd hours, handling property inspections and legal safety checks, dealing with late or non-payment of rent, and complaints from or about your tenants.

5 – Not getting the right mortgage deal: Despite the boom in property rental in recent years, Buy to Let mortgages still represent a fairly specialist niche of the mortgage market. Not all lenders provide Buy to Let mortgage deals and, frankly, you’re unlikely to get the most affordable rate on this type of mortgage by going into your high street bank or building society.

Deals can vary considerably in interest rate, arrangement fees and other factors. By dealing with an experienced mortgage advisor like Steve Mears Independent Mortgage Services, you can be sure you will receive expert guidance and he’ll recommend the most suitable deal for you. So call now on 0117 325 1130 or outside office hours, enter your details on the right for a call back at a time convenient to you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Our fee for mortgage advice is between 0% and 2% of the loan amount payable on completion.  Typically this will be £495.