Are you the next Rigsby?

“Yes, you don't want a carpet with a thick pile, you'd tire yourself out crossing the room.” – Rigsby

What are you going to do when you retire?

With problems in China and the volatility that this is creating in the stock market many are wondering how easy is it to enter the Buy To Let game. Are you the next Rigsby?

One thing is for certain, Mr Rossiter would certainly not have passed muster with the local authority and I doubt very much that he would get his Private Landlord Registration badge given the state of repair of his bedsits. If you are thinking of dipping your toe into the buy to let game then you need to be aware of the legal requirements not only when you are buying the BTL property but also the ongoing red tape when renting property. If you are new to the game, then I would strongly recommend seeking the advice of a letting agent and at least initially let them do all the heavy lifting.

Unless you have a pot of money stashed away, it is likely that you will require a mortgage. There are a number of specialist lenders in the marketplace and you should certainly seek the advice of a mortgage adviser who will be able to understand your requirements and source the best options for you. You will probably need a 25% deposit. Long gone are the pre-2007 days were a 15% deposit secured the keys to the BTL kingdom.

The mortgage lender will have certain requirements that we, as solicitors, require to ensure are put in place before the mortgage funds are drawn down and the transaction completed. Generally speaking these are as follows: –

1. In the event that you are purchasing a property with the sitting tenant then we need to see sight of the lease documentation to make sure that everything is above board.

2. You need to make sure that you have registered with the local authority as a private landlord.

3. You need to make sure that you have in place a Energy Performance Certificate (EPC). This should be provided at the time of the purchase as it forms part of the Home Report.

Once you have completed the purchase then the real legislative requirements kick in.

As a landlord, you have responsibilities, including:

• keeping your rented properties safe and free from health hazards

• making sure all gas and electrical equipment you supply is safely installed and maintained

• following fire safety regulations

• providing an Energy Performance Certificate for the property

• protecting your tenant’s deposit in a government-approved scheme

And we haven't even touched on the tax implications, HMO's (Houses in Multiple Occupancy), Short Assured Tenancies, repair obligations and PRHP, rental increases and disputes to name but a few. It certainly is not as simple as buying the property, getting a tenant and watch the money roll in. As with any investment you need to do your research and make sure that you have the time, knowledge and perserverence.

Your partner may not take too kindly to a call at 3am from your tenant who has returned from the night club demanding that you come round and fix the toaster. And you think I am joking…………

If you are considering buying a property for rental then please call me to discuss and I can tell you how not to be the next Rigsby.