Landlords 'should think about a location's potential'

Posted: 15 Feb 2011 13:45:36 GMT

An expert has said there are some mistakes that new landlords commonly make.

New landlords may need to research locations in more detail when they are considering potential buys, if one professional is to be believed.

David Lawrenson, private rented sector expert at LettingFocus.com, noted that buying appropriately is often where people entering the buy-to-let market go wrong.

He commented that while some locations promise future demand and growth, it is common for people with less experience to fail to identify these areas.

"They buy inappropriate property, which they are going to struggle to let out and which is never going to make any money in the long term," Mr Lawrenson said.

He also mentioned the "tenant from hell" can be a problem landlords encounter, which can occur if thorough background reference checks are not carried out before the contract is signed.

Last month, director of LandlordZONE.co.uk Tom Entwistle claimed the flow of tenants will be positive in the immediate future due to economic circumstances, so the correct choice of property and location could be beneficial for buy-to-let landlords.
 

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