New buy-to-let guide launched

Posted: 13 Nov 2006 11:03:56 GMT

Fusion Property Investment Services has launched a new guide for buy-to-let investors, offering an easy-to-use reference book on the market

Fusion Property Investment Services has launched a new guide for buy-to-let investors, offering an easy-to-use reference book on the market.

Headline recommendation is that investors walk away from a deal if the net annual rent divided by the value of the property is below six per cent.

Landlords should aim to balance the books on a 60 per cent occupancy level and budget for 80 per cent, said Fusion managing director Gregoire Godin.

"Employ a building surveyor to check out the property. Ensure there are guarantees and timber indemnities. Check loft insulation and double-glazing," he told FT Adviser.

"Including utility charges in the rent is essential for houses of multiple occupancy, where the greatest rentals are to be achieved."

He added that regeneration areas with factors such as transport, shops and local employment were a key to the buy-to-let market.

"Tenants are usually single, without children. They are more interested in things like convenience stores than good schools," he said.

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