With the business world still reeling from the effects of the pandemic, many investors are looking for alternative ways to generate a healthy return and one of the most precious commodities is land, which is finite in amount. The global population is growing exponentially and all of these people need a place to live; for the organised person who has access to the capital, the property rental market looks very attractive, especially here in the UK, where rents are soaring. Also you know here in detail about renting dental office space.
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Buying a rundown property
This is a shrewd way to generate equity; find the right area and look for a rundown property – crunch the numbers and use a local builder to revamp. As long as the building is structurally sound, renovation costs are reasonable and the appeal of the new property would make it easy to find suitable tenants. It is possible to double your money over a couple of years, while renting at top prices generates a good income stream and your asset appreciates in value. In some ways, renting out a property is a win-win; your tenant is paying the mortgage and the value keeps on rising and if you end up with 4 or 5 properties, you will do very well indeed.
Finding a mortgage
The first thing to understand is that a broker is preferred when looking for a mortgage; an independent broker such as ascotmortgages.co.uk has connections with literally hundreds of lenders. They can find a commercial lender that will give you 100% of the purchase price, plus all of the renovation costs. The broker can tailor the loan to suit your needs even if you want to know about renting dental office space on loan and you won’t find lower interest rates.
Property management company
It is essential that you join forces with a leading property management company, who have all the resources to be able to offer a comprehensive service.
- Carry out building repairs
- Monitor the property 24/7
- Screen potential tenants
- Handle tenant enquiries
- Provide grounds maintenance service
They will even handle the finances and wire the rent money into your account and you don’t even have to meet tenants, such is the level of service. Some offer legal services and deal with complaints and court orders, which can happen. Of course, economic growth needs to be occurring, as this ensures a demand for housing.
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Accepted liability
Prior to investing in the property rental sector, you must accept that as a landlord, you have many liabilities, which is another reason to use a property management company. While not common, tenant disputes can cause friction and if you have a management company in your corner, these issues are quickly resolved. You don’t need to be bothered with minor details like leaking taps or doors that won’t close, your property management partner has your back.
Many investors have already picked up on the rising demand for quality rental accommodation and now is a good time to move into that arena; crunch the numbers and see what that brings, then if all looks good, find a commercial mortgage broker and set the ball rolling.