Buy-to-let: Is it worth investing in 2022?

Although “buy-to-let” process is a real estate investment rooted in the past, you must be well-informed before making your decision! Here is all you need to know about the procedure of purchasing a rental property, so that you have a full picture of what it is and be able to decide if it is something that you want to go ahead with.

What is "buying a property to rent"?

It is an ideal investment if you want to have a regular income. In particular, the "buy-to-let" process is as follows:

• You find the right property
• You buy the property
• You rent it out to a third party, thus creating a new source of income

Types of rentals

Long-term and short-term renting are the various kinds of renting that you can apply to take advantage of the property you have bought.

Long Term Hire

This is the classic way of renting a property we are all familiar with, which continues to have many advantages.

In particular, the advantages are as follows:

• Fixed income

A creditworthy tenant can provide you with a steady monthly income for the duration of the lease.

• You do not pay fixed bills

Except for a few charges that the property owner bears, the rest of the bills (electricity, water, heating, and internet) are paid by the tenant and will not put a strain on your wallet.

If you are now wondering about the disadvantages of long-term renting, you should keep the following things in mind:

• Slow source of income

Long-term renting may be a steady source of income, but it does not provide you with "quick profit".

• Maintenance and repair of wear and tear

As a property owner, you are responsible for maintenance and restoration of property damages, while tenants are responsible for minor ones.

• Potential problems with the tenant

Although your agreement with a tenant is legally enforceable, there is a chance that you will have disagreements. As a result, try to maintain a good relationship with him or her.

Short-term renting

If you rent your property for less than a year, then it is a short-term rental. It is primarily targeted at property owners who do not want to rent their property for an extended period of time while also seeking a quick profit. However, there are benefits and drawbacks to this sort of rental.

Advantages

The advantages are as follows: According to the legislation you have the right to lease your property wherever and whenever you want, for as long as you desire, use it for personal reasons or even sell it, as it is always available (immediate availability). Short-term rentals can help you make money quickly, especially if you own a property in a popular location, which you can use to your benefit. Also, due to the temporary stay of your guests, you do not have to constantly worry about the suitability of the tenant. Finally, the property is inspected for any damage after each stay and so you know the condition of your property, without any unpleasant surprises.

Disadvantages

You will realize that short-term rentals are time-consuming, since you are responsible for everything, such as reservations, maintenance, cleaning of the property, etc. Moreover, in this case you have to offer a fully furnished and equipped place, so, you will need a considerable amount of money to furnish the house with durable and elegant furniture, and all the necessary electrical appliances. At the same time, do not forget that as the owner of the property you must pay the fixed bills, which can sometimes be "absurd,” as transient tenants are unlikely to care about the water heater or the air conditioner being left switched on for hours. Finally, you must consider the possibility that your property presents more frequent damage due to the constant change of "tenants".

If you are still wondering which is the best option, you can get in touch with a specializedreal estate agent who will be able to answer any questions you may have. Then, you will be able to decide if it is right for you!