# Top 5 buy-to-let landlord mistakes

> Source: https://nolettinggo.co.uk/blog/top-5-buy-to-let-landlord-mistakes/
> Author: NoLettingGo
> Published: 2011-03-02T20:59:44+01:00
> Modified: 2011-03-02T20:59:44+01:00

I read a great article written for Upad this week....if you missed it then here it is. It is always good to remember the basics. The Buy-to-Let boom is unlikely to return any time soon. A serious lack of good deals from BTL mortgage lenders is compounded by a distinct absence of confidence right now. But it does look like…

I read a great article written for Upad this week....if you missed it then here it is. It is always good to remember the basics.

The Buy-to-Let boom is unlikely to return any time soon. A serious  lack of good deals from BTL mortgage lenders is compounded by a distinct  absence of confidence right now. But it does look like those green  shoots of optimism are starting to appear again and 2011 may well be the  year when a little cheer returns for budding Buy to Let landlords.

Tenant demand has never been stronger and banks say they want to lend  again. Combine that with rising rents in many areas and a housing  market that continues to splutter, and you’d be right to think that now  is a good time to reconsider a Buy to Let investment.

And invest is the key word. Buying to let is just another way of  getting your capital to work as hard as it possibly can for you in order  to generate returns. How you do that is up to you. Perhaps you want the  boost of a monthly rental income from a property. Or you could fancy a  longer term punt and hope to rake in the cash when you sell the property  some way down the line. But whatever your intentions, make sure you  don’t make any of the common errors that often put a Buy to Let  landlord’s investment at risk.

**Don’t spend too much for too little return.**
Calculate what you can afford and take into account all the expenses of  being a landlord. Don’t overstretch yourself. Be realistic about your  finances and take professional advice on taking out an appropriate  mortgage. Consider future interest rates. Over the next few years,  interest rate rises are inevitable. Don’t be caught out: will your  investment be as attractive if any mortgage payments you make rise  dramatically?

Being a landlord also attracts all manner of expenses and they can  sometimes come out of the blue. Ensure that you can afford them and also  that they don’t dent the profitability of your investment. In a rented  flat, the boiler could go kaput at considerable expense or a service  charge bill could come out of the blue. Expect the unexpected.

Remember that your rental income might occasionally be reduced.  Tenants might miss the rent and get into arrears or you could experience  voids between tenants when the property isn’t generating any revenue.  Ensure that you should mitigate against these and that you can afford to  keep going through the leaner times.

**Don’t forget to “futureproof” your investment.**
Many landlords come a cropper because they spot a cracking property at a  great price and just go for it. Don’t forget Elvis: only fools rush in.  With a little local research, you might discover why the property is  such a bargain. Is the location up to scratch? Is crime a problem? Is a  new motorway just about to plough through the local nature reserve?  Maybe a supermarket is planned for the end of the road? It doesn’t take  much nous to do some research and understand what’s happening in the  area. A bargain property is always a bargain for a reason. Just make  sure that some third-party development isn’t going to blight your  enterprise.

**Buy for your tenants, not yourself.**
Channel your inner Vulcan, disengage your emotions and buy a property  that will generate a fine return. That’s the challenge Don’t fall into  that all-too-common trap and buy a place you like but which is entirely  unsuitable for the tenants you have in mind. And be careful to approach  the decoration and fittings of your property in the same way. Go for  generic colours and furnishings and think of your future tenants at all  times.

**Don’t forget the taxman. (He won’t forget you!) **
In general terms (and you are best advised to consult a professional  accountant on such matters), if you are making more than £2500 profit on  your property each year you’ll need to file a self-assessment  tax  return. So make a merit of it. You can claim tax relief on certain  expenses you incur as a landlord. A canny accountant will help you pay  not a penny more (and not a penny less) than you have to and is well  worth the expense for all the expertise they can offer.

**Do you understand the role of a landlord?**
Sometimes landlords jeopardise their investment by failing to appreciate  and understand the legal frameworks that surround every landlord.   Firstly, whilst it may be your house, it isn’t your home. You can’t just  pop by on a whim and you are also responsible for maintaining the  property in a fit state for the tenants. Bone up on the law, read a few  books and keep up with the news. Joining one of the landlord  associations out there is always a good idea.