Investing in property, especially buy-to-let properties, holds a lot of appeal. Becoming a landlord is a great way to invest in properties, real estate opportunities provide extra cash flow and allow you to earn a rental income.
Whilst becoming a first-time landlord is an exciting prospect, there are a few things you should look out for when choosing which type of property to buy.
At ProfessionalConsultantsCertificate.com we have outlined the difference between residential and commercial properties to help guide you through your decision.
No matter your property choice, a Professional Consultants Certificate is needed.
Residential Properties are buildings that have been built for individuals or families with the intent that people will be living in these properties. Residential properties include terraces, detached and semi-detached houses as well as flats or bungalows.
When it comes to choosing a residential property as your first investment, there are a few things to consider as a first-time landlord.
One of the many pros of becoming a residential landlord is that you get to be your own boss, choosing how to portray your property and how to run it.
As a landlord you may find that it is cheaper and easier to get a mortgage on your buy-to-let property. It is also very easy to make a return on your initial investment as there can be a speedy turnaround between property purchase and moving in new tenants.
Houses and rental properties are currently in high demand, so you can be sure that investing in a property for residential purposes will ensure that your property will rarely remain empty, continuing to improve your monthly income.
Whilst becoming a residential landlord comes with many benefits, you must also consider the extra work you will be required to complete.
As a residential landlord you are responsible for any repairs that may need to be completed on your property, no matter how big or small, you will also need to try to keep your property filled at all times, an empty property is not ideal for a landlord.
Commercial properties are solely used for business purposes and include anything from offices and restaurants to shops or medical centres.
If commercial property investment seems like the right choice for you, there are a few things you should consider.
Choosing to let a commercial property can be a very secure start to your time as a landlord, depending on your chosen commercial property your residents could remain in your property for a very long time.
Unlike with a residential property, commercial landlords are not responsible for property repairs, which falls to the tenants and their insurance. Commercial tenants are also only likely to contact their landlord during business hours, freeing up your time outside of business hours to relax and enjoy your time off.
When choosing a commercial property you should be prepared to provide a higher initial investment than that of a residential property. You will also be required to pay business rates on empty commercial properties, an incentive to always keep your property in business.
Whilst your tenants will have business hours, you will still need to keep up to date with any paperwork and property admin.
No matter which property you choose to invest in, residential or commercial, take the worry out of owning your own property and make sure you have your professional consultants certificate.
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