Wednesday, May 8, 2013

Managing a Mortgage on a Property Being Used For Student Accommodation

A lot of people have started investing in properties for rental income. Investing in a property for rental purpose is a very good way to make additional income. While you can always rent your property to families and business people, the trend for student letting is also on the rise. Letting your accommodation to students can prove to be a steady source of income, especially if you hold a property nearby institutes and learning centres.

Mortgage

But if you have bought a property on mortgage, then managing it can be a difficult task. You need students who can stay and pay rents on time without much hassle. Failure to obtain rents on time can create financial problems as the burden of loan instalments will start affecting your budget. Therefore, it is vital to choose renters who are capable of paying rents on time. Let's take a look at some tips that you can use to maintain your mortgage property you bought to let out.

Get in Contact With the Letting Agent: Not many people realize, but a student lettings agent can ensure that you get consistent flow of income from your rental property. Hiring a letting agent will ensure that your property is never vacant. Since it's a mortgage property, it is important that the property is occupied by some or the other tenant always. This will allow you to strike a balance between your loan and budget. A letting agent will help you get the best potential return on your investment. Make sure you hire a specialist letting agent who is well aware of the target market and majorly deals in student letting. Your agent will do anything to get the right people to rent your property.

Dealing with the everyday issues: With a property let out to students, you'll have to undergo a lot of challenges. Although the profit in letting your property to students is high as compared to families, maintenance can be a bit of an issue. This is due to their careless attitude towards cleanliness and maintenance. You must make sure that you get a contract signed by the tenants mentioning everything clearly. The date of the rent, the cost of maintenance and repair, electricity bills etc. All the terms and conditions should be clearly stated before signing the agreement. You should be aware of the activities taking place on your property to avoid any kind of future complications.

Make sure you do a bit of market research while finding a letting agent. You can ask around for recommendations or use internet to gather testimonials of people who have used the services of the student lettings company you are considering. This is the best way to find a professional and efficient letting agent who can take care of your property and make sources for constant income from your buy-to-let property. It is a good idea to put your investment in the hands of professionals to get the maximum returns. This will even help you get rid of your mortgage in a short period of time.

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