Top 5 Buy to Let Mistakes

The buy-to-let market is a big deal in the UK. In fact, it's so big that it accounts for over 15% of all UK housing transactions and has been steadily growing since 2009. With so many tenants and landlords looking to invest in this market, there are bound to be some mistakes made along the way. To help make sure you're not one of them here are 5 common mistakes to avoid when buying a property as an investment:

Not understanding the legalities

• 1. Not understanding the legalities of the property you are buying.

• 2. Not understanding the legalities of the property you are renting out.

3. Not understanding the lease agreement and tenancy agreement, including what should be included in them and what shouldn’t be included in them. The most common mistake here is when a landlord makes promises to tenants about what will happen at a later date (for example, promising that repairs will be carried out by X date). Tenants can hold landlords to these commitments but if they don’t get done there can be issues further down the line if something goes wrong with other aspects of their tenancy or relationship with you as landlord; for example, if you have promised them something like frequent inspections then this could affect how much notice they give before moving out if they want out early under section 21 notice or fixed term agreements because they no longer feel safe living there after being let down by not getting repairs done on time etc., which could cause damage to your rental income over time depending on how long those repairs were delayed for too long while also causing stress among both parties involved who now feel unhappy living together because of events beyond either party's control such as having been let down by each other's actions (i) because of poor communication skills between both parties; ii) because one party has failed at keeping up with their end(s) of any contract entered into together while also iii) causing problems between other tenants who might have lived comfortably together before this happened . . . Sometimes too much emphasis is placed on making sure everything looks good externally rather than internally where it matters most!

Keeping poor tenants

Your tenants can make or break your buy-to-let business. The right tenants are easy to manage, pay rent on time, and keep the property in good condition. The wrong ones will be a nightmare to deal with, cause damage to your property and leave you with legal bills. Keeping good tenants is essential for a successful buy-to-let investment so it is worth making sure that you don't make any mistakes when selecting them. Here's how:

• Look for great references from previous landlords - A reference from the current landlord should not be the only reference taken before offering someone tenancy of your property. You should also check out previous landlords as well as talking directly to prospective tenants about why they left previous properties (if applicable). This will help determine whether or not they were happy with their past experiences and if there was anything that could have been done differently by either party involved in order to prevent such situations arising again in future tenancies or even employment contracts if necessary!

Underestimating refurbishment costs

One of the biggest mistakes you can make as a landlord is to underestimate the costs involved in turning your property into a rental, as this could mean that you're left with an empty place and no money.

If you are planning on buying a property to be let out, it's best to look at how much it will cost before committing yourself. You'll need to factor in the cost of materials such as paint or wallpaper, labour costs such as those for decorators or builders, VAT on all these things and any other expenses that come up along the way (the price of flooring may rise depending on which type you choose). If necessary, hire someone else like one of our recommended contractors here at [email protected] who specialise in specific aspects such as plumbing or electrical work so that they can do most of this themselves but still pass on their knowledge accordingly too!

Paying unnecessary taxes and fees

Paying unnecessary taxes and fees is a common mistake that landlords can easily avoid. It's also one of the easiest ways to waste money on your investment, as you'll end up paying thousands more than you need to over time.

Here are some tips for avoiding this costly error:

• Conduct careful due diligence when purchasing your property so that you can avoid properties with hidden problems or low rental yields. This will help cut down on repairs and vacancies, which in turn decreases your risk of losing money.

• If possible, get a professional property manager who knows how to optimize profits from tenants without breaking any laws or contracts (and who will make sure all the necessary paperwork is filed correctly). This can be worth paying extra for if it helps keep costs low while increasing rental income—and thus helping offset those extra expenses!

Not seeking expert advice

When it comes to property investment, it's easy to make mistakes. In fact, many landlords make the same mistake: not seeking expert advice.

Many people have bought a few properties over the years and think they know everything there is to know about investing in buy-to-let. However, as with any business venture, there are always new things to learn and ways of doing things better. While some basics never change (such as needing good management skills), constantly refining your approach can help you achieve success faster than if you stick with outdated ideas or unproven methods.

The best way of ensuring that you get the right advice is by finding someone who can advise on a wide range of different issues related to buying and managing rental properties; someone who has experience working with professional landlords; and someone who understands how changing legislation affects your investments - both now and further down the line when further changes may be made or introduced.

Conclusion

In conclusion, buying a property to let is a great investment, but it can be costly if mistakes are made. To ensure that you get the best possible returns on your investment and avoid making any unnecessary mistakes, it is important that you seek good advice from specialists such as estate agents or solicitors who specialise in this area of work.

---