Investing In Good Rental or House Property ~ Finance Content

Friday, July 20, 2012

The market of housing that crashed in 2008 probably made the ideal conditions for

tenants looking to find secure and affordable houses and see ridiculously low deals.

1. The Neighborhood - The property is as good as the neighborhood that it is associated

 with. The huge size of the house with so many exotic features will have no value if

your neighbors play loud music and the local youths are vandalizing a lot of property

in that particular area.

2. The Location -  A lot of home buyers mainly take into consideration the location

of the home. But keep in mind that location is not really everything as you can live

happily and comfortably in poor locations. But I am not trying to say that location is

unimportant as you must always buy a house that is near public schools, libraries,

warehouses, shops, friends, family, and cousins that way you get the feeling of being

connected with your social life. You must ensure that your kids get into the good and

quality schools and get the education they deserve.

3. The Property Itself -  The property that you are looking at should be suitable for

you and your family. A large family should not be crowded in a small home they should

have enough rooms to be comfortable and have a lot of space. Maybe the size of the

garden is important to you. Your personal choice may not always be the case as you

might not be able to afford your dream home. So you might end up buying the cheaper

homes that don't quite suit your needs. But you should always purchase a home that

is fully functional and safe. The lighting and electric must follow the industry

standards, your gas boilers should be inspected yearly by an engineer who is with the

Gas Safe Register. Mould, rot, and damp should also be treated by the landlord.

4. Council Tax -  You will have to pay the council tax so it would be wise to

double check the band of a property before you agree to live there. Students, single

occupants and the unemployed are always entitled to council discounts, so your

benefits should be checked too.

5. The Landlord - It is very crucial to get to know the landlord. They don't have

to be your friend, but they should never be a stranger. Even though they are

to begin with, which is why you must get to know them before signing the lease. A

good landlord is usually honest, approachable, friendly, fair and reasonable. They

should be insured with clear insurance papers. But it is good if they are also

a member of the National Landlords Association.

6. Energy Efficiency - You will usually have to pay for gas and electricity, so the

energy efficiency of a property should be checked to ensure that the bills can

be kept to a minimum price. You can ask your landlord to produce evidence of Energy

Performance certificates (EPCs). Double glazing, draught excluders and loft and cavity

wall insulation will minimize heat loss while the energy efficient boilers could

result in savings.

7. Tenancy - This tenancy agreement is a legally enforceable contract, so the provisions

ought to be scrutinized. There shouldn't be any surprises here and the prospective

tenants should take their time to carefully read the agreement before signing it. You

should always view the impatient landlords with suspicion. Usually an assured shorthold

tenancy will give you the most flexibility for landlords and tenants, but some

of them might even require long term agreements.

8. Sharing and Sub Letting - Are your family, friends, and cousins allowed to stay

in the property? Does your landlord retain a right to share occupation of the property

at any point? Can the tenants sub let? Are your pets allowed? Remember to answer

these questions before you sign the tenancy agreement.

9. Furnished or Unfurnished - Furnished property may sometime have their own drawbacks.

The furniture might not even comply with fire safety. The furnished property should

include the essential items like a microwave, refrigerator, ovens, beds and chairs.

Meanwhile an unfurnished property can most of the time be negotiated with the

landlord.

10. Cost - The cost is the most crucial part in investing in the right type of property.

Try to negotiate the list price as the landlords will often make concessions, but some

might not like the ones who rely on housing benefit. Always ensure that the landlords

utilize approved deposit protection schemes like MyDeposits, Deposit Protection Service

(DPS) and the Tenancy Deposit Scheme (TDS).