10 Worst Mistakes an Amateur Landlord Can Make

Posted : 19/09/2016 | By Amanda Hosking

Buying property and becoming a landlord can be a daunting prospect. There is a lot of hard work involved in property development and a lot to learn. However it can be very rewarding indeed. To help you on your way, here are the ten top mistakes to avoid when buying property to let.

1. Choosing The Wrong Area
New developers will often look for areas that they think will be up and coming in a few years. However if the area is not a nice place to live at the moment renters will not want to live there, and this could reduce your rent prices. It is also important to make sure the place you choose to buy has local shops, public transport and other amenities that renters will need.

2. Employing An Unreliable Builder
Before deciding on a builder get quotes from as many builders as you can and compare prices. Look at examples of their work and ask past clients for references. You need to make sure they are reliable and are offering a good price for the work. Before choosing them ensure they have signed a fixed price contract, this is important so the price cannot be increased later on.

3. Paying Too Much For The Property
Do your research and planning before making an offer on a property. Work out the cost of renovating the house and how much rent you would get per month. Then decide how much to offer with these costs in consideration.

4. Paying Less For Fixtures and Fittings
Although it may be tempting to go for the lowest priced items, renters will notice this when they view the property. Aim for products that are designed to be long lasting, even if they do cost slightly more. This will lead to less repairs and replacements in the long run and will make the house look attractive to prospective renters.

5. Overdoing It
Whilst avoiding low quality items don’t do the opposite and go overboard. Opt for good quality products but not luxurious ones that cost too much. Keep it modern, simple and clean.

6. Getting Personal
When decorating and furnishing the house think about what an average renter would like. Do not input your personal tastes as they will not be for everyone. A good idea is to have neutral colours so the home is a blank canvas for renters.

7. Not Liaising With Neighbours
Objections from neighbours about your project can delay your work for months. Make sure to introduce yourself to the neighbours and let them know of any planned work in advance.

8. Not Planning
Many new property developers tend to rush in and start work without having costings, timescales and sometimes, planning permission. Take some time to plan out what you need to do, when it needs to be done, how much it will cost and obtain planning permission before getting started on the work.

9. Finances
When buying a property, do not borrow more money than you can afford. No matter how much you think you will make in rent. Search around for the best deals and realistically calculate how much renovating the house will cost and the time it will take.

10. Greed
You may be really proud of the renovation work you have done to the house but putting the rent too high will put off renters. Look at similar properties around the area and see how much they are renting for, then base your price off this.