Is owning a rental property in the North East worth it?

Have you been thinking about buying a property to rent out?  Perhaps you've been looking at ways to invest some money and have seen that property could be a good option.  You may have carried out lots of searches online, seeing many good things but also seeing quite a few potentially negative things too.

So, what’s it all about? Is owning a rental property in the North East worth it?

Here, we take a look at owning a rental property, to help you decide if it is the right decision for you.  If you're thinking about investing in the North East, come and have a chat with us!

Is owning a rental property in the North East an easy way to make money?

Firstly, let’s dispel the myth that becoming a landlord is an easy way to make a few quid, to get rich quick and to have an easy life. If you think this, then you may need to stop and think again.

It’s true, being a landlord is a great way to invest money that might otherwise sit in the bank earning very little interest. But you have to think of the long game. A property may well sell for a lot more than you paid for it and so you will make some money that way. The rent should cover the mortgage repayments but don’t forget the additional costs such as insurance, maintenance and gas and electrical safety checks. All these things have to be managed too - they don’t just happen. Doing the maths before making a final decision is key!

Can owning a rental property be treated as a ‘business?’

Being a property owner brings some great rewards, and not just financial. You must treat it as a business though. As you will be your own boss, you’ll be making decisions that you believe to be right and doing things that you know will bring you, personally, financial rewards, and that’s the key to getting it right - treat it as a business. If you look at it as a little hobby, you may not keep up with the legal side of things, or you may become a little lax when it comes to making sure certificates are up to date - and you really cannot afford to do that.

Top Tip: If you think you’d like to own a rental property but need a helping hand on the managing and lettings processes, please get in touch with us. It’s what we do for a number of landlords with rental properties in the North East to ensure that they’re up to date with all recent regulations and keeping them compliant!

Is owning a rental property time-consuming?

One of the things that people underestimate when they are thinking about becoming a buy-to-let landlord is time. If you have time to look for a property, to go through the purchase process, to manage the property, to maintain it, it can be a great thing to do. If you don’t think you have the time, employ the services of a letting’s agent. A lettings agent can either find a tenant and do the legal paperwork at the start of a tenancy, or they can do all that and then manage the property on your behalf too.

Top Tip: Don’t write off becoming a landlord if you don’t think you have the time. Giraffe Residential can help you achieve your goals without impacting on your precious time.

What about expenses?

Let’s say you’ve found what you think is a great property. It’s in the right area of the North East and in a location where you will get a reliable tenant paying the right sort of rent. Brilliant - a rental property makes perfect sense. But! Don’t forget the expenses. There are legal fees to think about, potentially the mortgage fees too and additional costs if you need to make repairs.

Top Tip: It sounds simple, but always do the calculations and make sure the numbers stack up. If you don’t want to spend money on repairs and bringing a property up to date, then this also shapes what sort of property you buy.

Owning a rental property in the  North East is an opportunity awaiting you right now!

There has been a lot of press about house prices doing really well right now. That’s great news for the property sector in general, but there are also still opportunities to be had. You could snap up a potential buy-to-rent property and with some work it could well be a solid investment for your money in the long-term.

Top Tip: Talk to estate agents like us in North Tyneside. We know the area, so we know where the opportunities lie, and we know what makes a good rental property.

There are lots of things to get right when you own a rental property, but with the correct advice and support, you can create your own future.

Give us a call on 0191 276 0550 or email us at hello@girafferesidential.com for expert advice on buying a rental property in the North East.