Letting out a property

Renting out a property that you own is a fantastic way to make an income that is virtually passive. Although there is some work to be done with regards to finding tenants and property maintenance, a property for rent remains an extremely useful asset which can easily make as money as a bond or high-interest bank account.

There has officially been no better time to invest in a buy-to-let mortgage. The current economic climate means that demand for rental properties are at an all-time high. This has led to landlords being able to raise the price of rents to the point where the cost of living in a rental property has never been higher either.

Although the yield between a buy-to-let mortgage cost and rental income can wildly vary, landlords should expect to be getting back anywhere between five and ten per cent on their investment.

Those who believe they may not have enough time on their hands to adequately deal with a large portfolio of properties to rent may want to consider striking a deal with letting agents.

Letting agents are property experts who will be more than willing to help find tenants, deal with maintenance and queries for a share of your profit. This may result in a lower yield for the landlord but are arguably leads to a much higher money-to-effort ratio for the landlord.

There are few things which landlords need to consider when choosing a property to invest in. The location of the property is perhaps an even greater factor to the interest it will receive than its quality.

There will always be students who are desperate for a property near their university, as well as families who want a home near a good school. Professionals may need a property near a train station, so landlords should bear this in mind.

It could be argued that all it takes to rake in the profits from becoming a buy-to-let landlord is some common sense and the initial capital to invest.