With rising property prices in the Orkney Islands, many islanders are looking to the mainland UK for more affordable investment opportunities. Buying a rental property in places like London or Manchester can generate ongoing income. However, being a landlord from afar presents unique challenges. Use this guide to successfully manage your long-distance UK rental property as an Orkney Islander.
Research the Target Rental Market
Thoroughly research the rental market in your desired UK location before investing. Check average rents for different property types and sizes. Look at demand, vacancy rates, and tenant preferences to ensure adequate rental income and returns. Familiarise yourself with local amenities that tenants want nearby.
Hire a Local Estate Agent
Engage a local estate agent in the UK area where you purchase property. They will be invaluable in finding the right investment property, handling your transaction, and managing the ongoing rental. Rely on their expertise regarding suitable locations, reputable builders and tradespeople.
Create a Budget
Carefully budget for your rental income and expenses. Factor in mortgage payments, property taxes, building insurance costs, letting agent fees, maintenance, and periods of vacancy. Ensure your projected rental income will sufficiently cover costs and provide a satisfactory return on investment.
Leverage Local Services for Maintenance
Engage qualified local tradespeople near your rental property for maintenance needs. Establish relationships with plumbers, electricians, builders, and handymen your letting agent can call when issues arise. For example, if you buy a property in Somerset, you will need a qualified Somerset electrician to carry out an Electrical Installation Condition Report (EICR). Simply search online for ‘electrician in Somerset’ and contact one with good reviews. Keep this trusted contact list on file for quick resolution of problems.
Market Your Rental Extensively
Work closely with your letting agent to market your UK rental property. Optimise online listings with professional photos and detailed descriptions of amenities. List it on prominent classifieds sites used locally. Consider incentives like one month’s free rent to quickly fill vacancies.
Vet Tenants Thoroughly
Don’t cut corners when vetting potential tenants. Have applicants complete detailed forms, and provide references, proof of income, and credit checks. This reduces the risk of non-payment and damage. Understand tenancy laws to draft agreements protecting your rights as a landlord.
Use Technology to Manage Remotely
Utilise digital tools to smoothly manage your rental from afar. Set up automatic electronic rent payments to avoid hassles obtaining cheques. Maintain financial records, documents, and communications on accounting platforms or programs. Connect via email, social media, and landlord apps.
Visit Occasionally
Aim to personally visit your new rental property at least once annually if feasible. Seeing the property and meeting your tenants in person is invaluable. You can address any issues onsite and strengthen relationships with your letting agent and tenants.
Being a long-distance landlord requires effort but Orkney Islanders can thrive investing in UK property. Follow these key steps to acquire and manage rentals remotely. With the right preparation, your new rental can provide a stable ongoing income.