There is much to consider when investing in a rental property. Whether you are a seasoned investor or letting for the first time, this checklist may highlight a few things you might not have thought of...

The Right House At The Right Price

It all starts with the right house, flat or property at the right price. Needless to say, you will not get a good ROI (Return On Investment) if you have paid over the odds for the property or if you have to borrow excessively so that the expected letting yield will not cover the cost of the mortgage. 

The Area

A good house is made even better if it’s in the right area. That is not only is it on a nice road but is there a balanced mix of both let properties and private residential homes? Is it close to local amenities and transportation? These can give you options when it comes to selling and letting.   

How Will You Let Your Property

Lettings agents can provide different levels of service in looking after your rental property for a relatively small fee. Everything from just collecting rent to finding and vetting your potential tenants to inventories and check outs. 

Tenants

If you choose to find your own tenants then there are a number of tasks you may want to complete such as setting up a bank account, arranging references, setting aside some time to meet tenants and arranging an inventory. Additionally there are certain things you must do for example organise all safety requirements, such as an EPC, and register deposits. Working with a good lettings agent will help take care of this for you. 

Rental Income 

It is important to get the figures right. You want to let your house and eventually make a profit on any potential borrowings you may owe on the house and any required maintenance and repairs. One way to monitor this is to create a spreadsheet and break down all anticipated costs on a monthly basis. 

Potential Expenses

While you are on your spreadsheet, think of expenses such as maintenance, boiler services, electric appliance testing, and an additional budget for the unexpected such as repairs or potential appliance replacement if applicable.

Remember Legal Obligations and Contracts 

Check out any legal obligations and make sure your property is up to scratch to avoid any unexpected expenditure, for example is your fuse box obsolete? Also, you will need a contract to protect your tenants and yourself legally.  

Development Potential 

Perhaps you have no intention of letting your house, you are simply going to restore it, or modernise it, then sell it. Perhaps you will improve your property, then let for a time then sell it. Whichever you choose, consider market conditions and if you can stick to your budget to maximise its potential.

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Adding value to your home is often fairly straightforward. When it comes to investments, making money often involves spending money, and your home is no different. Whether you are looking for a quick flip or a complete renovation, it’s important to make considered choices.   

Below, we discuss the best ways to add real value to your home...

A few ground rules

Be careful not to overspend. Make sure your changes are impactful and necessary. If a refurbishment will add to the quality of your living space, then do it, but not all passion projects add value. 

When it comes to suppliers, be resourceful, shop around and conduct plenty of research. Don’t just sign on the dotted line in a larger branded store, consider independent tradespeople, with excellent reviews, to carry out the work as they may be more cost effective.

Kitchen or bathroom? 

If the kitchen is in good shape but the bathroom is crying out to be replaced, then you may get more for your money by choosing a bathroom renovation. 

It could be that you need to do both the kitchen and the bathroom, which are arguably the two most impactful yet costly rooms in the house. 

A new bathroom can add up to 5% to the value of your house while a new kitchen can add up to 15%, but nothing is guaranteed so do the maths carefully and see what you can reasonably spend. 

Loft conversions 

A loft conversion can add between 10 – 20% to the value of your home, but be warned this is not an easy task. Firstly, check if you can convert your loft, beam heights are critical here, so you will need to get a reputable builder to give an initial appraisal. There is often lots of red tape and planning permissions involved in creating a new bedroom, office or bathroom in your loft. The good news is that this is sometimes much cheaper than adding an extension to your property.

Garden and outdoor living spaces

A nice garden can feel like adding another room to your house. However be careful as adding a few shrubs, mature trees, and some decking and you can end up spending thousands. Perhaps not as essential to add the same levels of value as other areas but still worth considering as it can complement the entire impression of your home. Inserting bifold doors to remove the traditional boundary between indoor and outdoor living can enhance this further. 

Energy efficiency 

A new heating system is not always a huge investment and could save money on energy bills, whilst hopefully not putting potential buyers off with the prospect of replacing the boiler. 

Solar panels are becoming increasingly popular. It’s an attractive proposition, particularly in today’s climate; to be self-sufficient when it comes to producing electricity. 

Cost effective ideas you could choose to do 

Sand and paint internal and external doors and skirting.

Check out your floorboards; in older houses often these can be sanded and varnished and will look beautiful on completion.

If you don’t want to replace tiles and cabinets, consider painting them. 

Improve or replace lighting and light fittings.

Sort any damp problems.

Replace carpets or old laminate. 

Regrout the bathroom. 

Check the guttering.

Stats - UK House Price Index, Nationwide Building Society and National Association of Estate Agents

Whether you’re letting or living in your home, neglecting winter maintenance can cause issues and with your property most likely your biggest investment, you can certainly help protect against it with the right winter maintenance .  Cold wintry nights bring with them; Jack Frost trying to bite chunks out of your pipes, the wind stealing tiles from your roof and heavy rain, and sometimes snow, bringing the potential of flooded areas. While you can’t stop nature, you can certainly help to protect against it with the right winter maintenance plan. So, what can you do to help keep your property safe against the assaults of winter?

Pipes

During the winter your pipes are going to get a lot of use. Repeated heating and cooling combined with a vicious frost can cause cracking. An easy step to take is to carry out a visual inspection, particularly of any external pipes.  Ensuring they are well maintained and are insulated will help protect them and therefore your bank balance from any large bills.   

Roof

Cast your eyes (from the ground) along the roof, check if there are any missing tiles and make sure the gutters are in working order and draining so that they are not creating an expensive and damaging pool of water. 

Boiler and Radiators

Check the boiler and consider getting it serviced annually. You can also bleed the radiators, the more efficiently they work, the better it will be for your heating bill. 

Wood Burners and Stoves

If you are lucky enough to own a wood burner, make sure the chimney is clear. Think back to when it last was serviced as keeping it in working order will keep the heat flowing efficiently and safely. 

Draughts

Do any internal doors need adjusting or replacing due to the hot and cold cycle of the seasons? Is there a draught coming from the seals around the fireplace? Or is there a draught coming from somewhere else that could be efficiently resolved?

Insulation 

It could be there is a draught coming from the loft. To prevent/stop this you should take a look at reinsulating your home. If you are not experienced in this it is worth employing a skilled tradesman to complete it. 

Salt and Shovels 

If you have a lot of exposed concrete paving or tarmac invest in a shovel, sand or salt so you can be prepared for snow and ice. 

Stock up

Build up your reserves of wood, or whichever fuels you burn on the fire.

Smoke Alarms and Carbon Monoxide Detectors  

With so many fuels and energy sources in use, make sure your warning alarms are in good working order. One minute of your time to check the batteries is always time well spent.

Insurance 

Check your policy. If the winter is going to be particularly bad with storms, ice, snow or floods then use it as a reminder to check in fine detail what you are covered for. Some policies might not cover for wind for example and the finer detail may state that only a certain amount of compensation is paid in the event of damage. 

Remember, if you spend a lot of time away for work or in a partner’s house, to adjust your policy accordingly as the house could be classified as unoccupied, even if it’s only for a certain period of time.

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