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Option Homes Ltd - News- Turning Your Pension into Property – Part 2

Turning Your Pension into Property – Part 2

Date Added 11/04/2016

As we discussed in Part 1 of this blog title, if you are thinking about using your pension pot to enter the buy-to-let property market, then you need to do plenty of homework to ensure it is the right financial decision for you. Once you are certain it`s a good idea, then you must identify a good area to buy a property in as well as give lots of consideration to the kind of people you want to attract as your tenant.

Deciding which kind of tenant you want isn`t as straightforward as it sounds, as we can`t simply tick a box that says ‘a nice one` and be done with it. Ultimately, it comes down to how you want to handle your responsibilities as a landlord.

Understanding Your Responsibilities as a Landlord

Some kinds of tenants aren`t fussy about the décor or amenities and will happily slum it whatever you do with the property (I`m looking at you, students). Those kinds of tenants are easier to find than others (certainly in a place near a university), though you won`t attract them with higher-end rents. More demanding tenants can be more reliable and stick around longer, and will likely pay more for the extra quality they demand, however attracting this kind of tenant will obviously involve much more work on your part.

Whoever you get in, you will need to provide and install certain safety features such as smoke alarms and carbon monoxide alarms. You`ll obviously want to carry out renovations in advance of finding a tenant such as installing clean carpets and a fresh lick of paint here and there (at the very least), but be aware that your duty of maintenance continues throughout their tenancy. This means that you`ll need to know reliable plumbers and electricians you can call to fix any of the problems that houses tend to experience over time.

Remember too that you will be expected to provide certain basic home comforts such as a fridge, a cooker and a kettle, though items such as televisions can be considered more as luxuries. Again it comes down to the type of tenant you are looking for. Also be aware that most people these days require an internet connection at home, and this can make or break a potential tenant`s decision.

Legalities and Letting Agents

You`ll need to get to grips with tenancy agreements and how they work so make sure you do your research into that. You will also come across the option of using a letting agent which is probably your best bet for finding a tenant. In some cases, a letting agent can take care of many of the landlord`s duties for the property as well, such as maintenance and the collection of rent.

Don`t just settle for the first agent you talk to though. Meet a few in the area and discuss what you want and how much they can meet your demands. Compare their services and fees and then make the call.
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