Over the last 15 years there has been a dramatic rise in the number of people who choose to invest in property for the purpose of renting. Buy to Let sales have become much more common. It is believed renting has become very popular among tenants due to the flexibility and freedom it offers, without the commitment of buying a home. For many, purchasing and letting property has become a very profitable investment. They provide a steady, reliable income as well as a steady rise in value of their property. The income from renting property should be enough to cover the landlords mortgage payments and make a profit.
Initially it appears that property investment and rental is a flawless way to a steady income and security but property management can be a complex area with its own set of risks and pitfalls but with the right knowledge and approach it can be very rewarding. Letting agents are a good way to have your property professionally managed for a small cost. They will generally take 10%-15% of your monthly rent, plus a one off management fee and will take care of all aspects of managing your property from arranging marketing, web site advertisements and property signboards, supervised viewings, credit checks, tenancy agreements and inventories, collection of rent, property inspections, and possibly a 24 hour emergency contact.
Reasons for Rental Popularity among Tenants.
For tenants, renting has become a more flexible and attractive alternative to buying. There are several benefits that property renting can offer tenants. With job insecurity, many people now fear having the commitment of mortgage payments in the event they are suddenly out of work. It allows co-habitation of couples without the difficulties of a mortgage if there is a split. Divorce rates have become much higher in recent years and with an ageing population where people are living longer, there is more demand for homes for people living alone. Getting onto the property ladder for first time buyers has become more difficult than ever, leaving some young buyers with no other option but to rent.
Reasons for Rental Popularity among Landlords.
For landlords, investing in property can provide a secure and steady income alongside an existing job or an alternative to other forms of savings and investment. Property rental in the UK has steadily become more accepted in the last few years, catching up with places with more established industries like Europe and the US. The demand for rental property is strong and with the guarantee that the landlord can have the property back at any time, as well as charge reasonable rent is very appealing. The option of Buy To Let mortgages has provided a profitable alternative to building societies, stocks and shares with far less chance of losing your money.
More Properties
Many landlords start their property rental investment with one property as a sideline income while keeping another job. However, this has led many to take on more properties, with some eventually owning a full portfolio, which can support them financially. Another area of investment which is rapidly gaining popularity is commercial property. Property management and Buy To Let is generally associated with flats and homes but with towns and cities full of shops and offices, the opportunity for investment in these areas is also being noticed.
With property investment comes a level of risk. The risk with property however, compared to the reward is far lower than the stock market, with a higher return than savings and building societies.
www.youlet.co.uk
You Let – Glasgow letting
agent and property management specialists in Glasgow.
