If you are trying to get into the business of renting out properties, you might find yourself strapped for cash. Once you have bought the house in question, you have to think about how best to furnish and decorate the new property so that those you rent to are able to live in it straight away. Lots of landlords seek to refurnish properties to the highest standard so that they can rent them out straight away, but when you don’t have much money that can be a lot harder than it sounds.
One way that you can go about furnishing a new rental property is to approach your bank to ask for a loan. You will have to request the loan as a business, and they will need details of the funds that you have currently in your account and the outgoings that you expect to spend. You should always phrase your request as a business proposal – after all, you won’t be able to make any money on a rental property until you have it decorated and furnished to a high enough standard that you can get a decent weekly rental price.
Why is it a good thing to get a loan? Simply because it means you can get up and running faster than if you had to earn the money, or if you did the redecorating yourself. Make sure that you only spend what you have to; there’s no point installing a brand new bathroom that costs thousands of pounds if you are only going to charge a few hundred pounds a month. Remember that although you are investing in your property, things soon become outdated; a new bathroom is only new for a few years, after which you might need to refurbish it again. Make sure that you only spend your money on what you absolutely need, and that all expenses are logged to prove to the bank that you are a viable business.
You will find it is very hard for you to get guaranteed loans, especially in these tough economic times. It’s important for you to know that you will probably only be able to get the finance you need if you have a good credit score.