Assetz® News - The stresses of buy-to-let investment

The stresses of buy-to-let investment

8th February 2006 |

While rental yields may be enviably high for successful buy-to-let landlords, the stresses of the job are not insignificant, according to experts at The Homebuyer Show.

It was only a matter of weeks ago that Standard Life Bank reported that buy-to-let investment was proving to be extremely lucrative for UK residents, with the vast majority finding they had the time and resources to go travelling, set up a business, renovate a home or simply reduce working hours.

As with most things, however, the effort that goes into reaching this position should not be underestimated and 91.5 per cent of those responding to a survey from The Homebuyer Show admitted that being a landlord is a stressful business.

Focussing on buy-to-let landlords with an average of six rental properties each, the survey discovered that finding appropriate tenants had proved a stressful task for 36.8 per cent of the respondents, while 21.7 per cent claimed that it was property maintenance that had proved the most demanding aspect of the job. A further 15.1 per cent found the task of sourcing properties more taxing than is generally acknowledged.

Few would dispute that a lucrative buy-to-let portfolio can be one of the most rewarding investment policies currently available to investors in the UK, but Nick Clark, managing director of The Homebuyer Show, has indicated that it is not a project that can be undertaken without careful consideration.

"Finding reliable and appropriate tenants is one of the biggest jobs for a buy-to-let landlord and it is absolutely crucial that everything is done properly," he said.

"Contracts, references, deposits and inventory checks can all come back to haunt landlords if they are not watertight and professional. Equally stressful is the responsibility of carrying out maintenance and emergency repairs," he added.

Mr Clark went on to highlight the pressure to comply with government regulations pertaining to health and safety. Other investors may worry about getting the most suitable deal on a buy-to-let mortgage while the usual hassles of paper work continue to plague some investors.

Experts at The Homebuyer Show have emphasised the importance of seeking advice when looking to invest in buy-to-let property. When it comes to choosing the best buy-to-let mortgage, experts agree that it is madness to go it alone, while predicting potential earnings can also be achieved more accurately with the help of professional property management companies.

Mr Clark has pointed out that many of the usual stresses of buy-to-let investment can be alleviated when projects are undertaken with the help of experts and with the buy-to-let sector currently vibrant, many investors are following his advice.