Looking for a new rental property can be a daunting task; chances are good that if you are searching for a property online you may be looking to move to a new area of the country for work or family reasons. Even if you are not moving to a new area but are looking to move to another property in the same region it can still be a big task.

What methods are there to help with the search?

There are still the more traditional methods open to rental house hunters which will include the local papers (if you are in the area to receive one) or visiting the letting agents offices directly. These are still valuable methods but can be time consuming or impossible depending on your situation. To visit the local letting agents may take a whole day or even worse a whole weekend, depending on where you are living and where you are moving too, plus there are no guarantees that you will find what you are looking for. If you set out a weekend to look for a property it could be likely that a knee jerk reaction could happen if you become desperate to find a property during the time you are there.

One of the most important things to remember is that you need to take your time, don’t leave your hunt to the last minute, this could result in you having to accept a property that is not ideal for your requirements. It is important to remember the more time you leave for your search the more selective you can be when choosing your rental property.

How do the Property Portals/Directories Help Me

In days gone by the portal sites and directory sites that advertised property were often found to be frustrating to use, you may have found the house or flat that you would like to take a look at, make contact with the agents only for them to announce that the property had already gone and the site was out dated. The portals have now become much more sophisticated and are as up to date as the agents own websites. Taking feeds automatically from the agents own databases on a daily basis often the property found is current, OK, so you may be unlucky and have selected a property that had already gone that day, however more often than not this wont be the case.

The Available Information

The information on these sites is good and provide full property details, location maps, landlord requirements (ie/ no smoking, dss, pets) and even have the facility to download the property details so you can review your top selections in your own time offline. The rental market has always been a step behind the sales market when it comes to particulars and advertising documents, this now is not the case and you will find that rental property online is documented as well as sales. The good sites will also provide agent profile pages which outline their services and also give you a link through to their company website so you can check for further information.

Are Rentals Still Second Behind Sales

A lot of sites are focused on sales and estate agents and have the rentals as a side issue. The rentals market is an entirely different market and is aimed towards a different sector of people, it is important that the marketing online and offline is aimed towards the correct demographic group. There are specialist sites which are aimed purely towards the rental market of which it would make sense to use these services first. As always there are some better sites to use than others and it makes sense to research each one and check as many properties as you can (online) first.

Reviewing the Information be Prepared

As stated in the earlier part of this article remember to take your time in searching for property, decide on what is important for you. Don’t go into this blind; be prepared as you would if you were buying a house, a bad decision at the beginning of the process could mean you spend 6 months (usual minimum tenancy agreement length) in a house/flat or an area that you would rather not be in.

Rentright is a dedicated rental property portal site and there are a number of different articles which can assist you in making the right decision about your next rental property, along with a whole host of other interesting information.

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UK buy-to-let investors are being tempted by offers of guaranteed rents on property deals around the world, but how good are these deals in real terms and will there be any rental demand once the guaranteed period ends?

Worldwide opportunities

Investors are looking beyond the overcrowded UK market for untapped property hotspots in Eastern Europe, the Middle East and out to the Far East.

Deciding on the best foreign markets to invest in is a case of weighing up the potential for growth and rental income against the risks and costs.

For example prices of residential homes in Beijing rose by 20% in 2005 (according to the Beijing Municipal Construction Committee), however there are many issues regarding the transfer of funds out of China, a 5% tax on rental income and the possibility that the Chinese government could claim the land back.

Latvia on the other hand presents a lower risk to foreign investors, with membership of the EU and the ability to borrow up to 90% of the value of the property making it a more appealing choice.

However, this is not to say that an investor can simply buy any property in Latvia and expect to make easy rental returns. Like any foreign market, the risks are generally higher than buying in the home market.

Incentive to buy

To help encourage potential landlords to overseas markets, a number of investment companies are offering guaranteed rents for anything up to 5 years. Rental guarantees, it is argued, provide a reliable safety net for riskier markets, however many experts warn they are merely a marketing tool and advise investors to look very closely at the deal being offered.

Key issues

One of the biggest issues with guaranteed rentals is a lack of demand for the property once the period has finished. Guarantees are often used to market properties that otherwise would not sell and many investors are shocked by the resulting drop in income.

In addition to this, it is often the case that investors end up footing the rental bill themselves, when developers inflate the price of the property to cover the guaranteed rent. This can provide a further shock when the investor tries to sell the property and realizes that it is not worth as much as they originally paid for it.

If you do opt for a guaranteed rental deal, make sure that it is properly underwritten by a bank. Otherwise you would be at risk of losing the guarantee if the developer were to go out of business.

Poor regulation means that it is also worth checking the small print for any hidden clauses that enable the developer to avoid paying the guaranteed rent and it is always a good idea to seek expert advice.

If you are interested in buying and profiting from short sale properties, you have many options. The most common is to flip the property. For example, buy a single family home, make needed repairs, and relist the home for sale. An alternative is to rent the property. If this is your first choice, you may consider allowing the borrowers or current home occupants to rent, but is this a good idea? It depends.

How much would you charge for rent? What you must remember is how you were able to buy the property. The borrowers were unable to afford their mortgage payments. What makes you assume they could afford monthly rent and utilities? The goal of profiting from short sales is to make money as quickly as possible. This means charging a fair value for rent. If average rental rates in the area are $900 a month for a single-family home, can they afford? If they were unable to pay similar mortgage payments, you got your answer. Either resell the property or find a tenant who can pay.

Average rental rates in the area. As previously stated, if it is common for a single family home to rent for $900 a month plus utilities, charge that much. Yes, a sob story may tug at your heart and you may want to do your good deed for the year, remember your goal. That is to make money. Truthfully, there are many families in need of a home. You can find a tenant who is willing to pay fair rental rates. Chances are, they have a heart tugging story too.

The current property state. Typically, properties are in better condition with short sales than foreclosures, but there are no guarantees. Commonly, borrowers suggest short sales. They want to avoid the damaging consequences of foreclosure and bankruptcy. These individuals take pride in and care for their home. They just can’t afford it any longer. When inspecting the property, how does it look? If you notice holes in the walls, torn furniture, and other small but costly damages, think about the added costs. If they are willing to “destroy,” the property when being the legal owners, what would happen if they were just renters?

So, should you let a borrower rent your recently purchased short sale property? It depends. The decision is yours to make. With that said, remember the quickest way to profit is from flipping. Unless you are able to purchase a low-priced property, have experience in the rental industry, or purchase property in an area where rentals are in high demand, reselling is your best option. These are less risks and the profit arrives sooner.

The only exception to the above mentioned factors you should take into consideration is with multi-family homes. Unfortunately, renters are left in a pinch with the high rate of foreclosures. Most pay their rent on time. It is the landlords and property owners that make poor financial choices. Some renters are literally having their money stolen from them, as it should go towards paying the rental unit’s mortgage, but it does not. If you have the option to purchase a multi-family or single-family home with paying tenants, keep it that way. In a couple of years, you recoup your expenses and make a profit but without the hassle.