May 21, 2023

Can You Rent Two Properties at the Same Time UK?

Can You Rent Two Properties at the Same Time UK?

Are you considering renting multiple properties at the same time in the UK? The idea of an additional revenue stream may seem appealing, but there are some factors to bear in mind. As a landlord, it’s important to understand the legal and financial implications of renting out two or more properties simultaneously. In this blog, we’ll explore the question: “Can you rent two properties at the same time UK?”

Can you rent two properties simultaneously?

Yes, it is possible to rent two or more properties at the same time in the UK. In fact, there’s no limit to the number of properties that you own and rent out. However, as a landlord, you will need to be aware of two main points:

Firstly, you will need to make sure that you have the financial capability to support multiple properties. This means you’ll need to have sufficient funds to cover the deposit, mortgage payments, maintenance costs and any unforeseen expenses that may arise when owning more than one property.

Secondly, you will need to make sure that you have enough time and resources to manage multiple properties. Being a landlord involves a lot of work, from sourcing tenants and handling maintenance issues to dealing with legal and financial matters. It will be your responsibility to ensure that each property is legally fit and safe to rent out. If you’re planning to rent out more than one property, you’ll need to make sure you have the time and resources to handle the workload.

How to finance multiple properties

Private finance

If you’re using your own funds to finance the purchase of more than one property, then there are generally no restrictions.

Buy-to-let mortgages

If you’re buying multiple properties with mortgage funding, you are more likely to experience restrictions about how many buy-to-let mortgages you can take out.

If you have a good credit score and access to savings, you should theoretically have no problem in securing a buy-to-let mortgage. It’s uncommon for first time buyers to rent property as it’s more risky for lenders to approve their buy-to-let mortgage.

Each mortgage lender will be different, but most set a limit of between two and five mortgages per landlord, or they may set a limit on the total value that one landlord can borrow across multiple properties.

Remember, you are seen as more of a risk to the mortgage lender if you cannot keep up with repayments, so not only will more properties make you a higher risk, but you will need to go through some detailed checks. This will include questions about your current rental properties, your projected rental income, your cash flow forecast and your credit score.

You will also need to demonstrate that your intended properties will achieve a good return on investment.

Portfolio mortgage

Another way to finance multiple properties is using a buy-to-let portfolio mortgage. This places all the properties that you own and intend to rent out under one mortgage, simplifying your finances and making repayments easier.

You usually need to own at least four properties before you can apply for a portfolio mortgage, and how much you can borrow is decided on an individual basis. The application process is normally more detailed and time consuming than a typical buy-to-let mortgage.

How to manage multiple properties

Can you rent two properties at the same time? UK landlords can, but when it comes to managing the properties, there’s a lot to think about. Some landlords find that they have bitten off more than they can chew, and it does become a full time job. Here are some tips for managing multiple properties:

Hire a property manager

A property manager can handle tenant issues, deal with repairs and maintenance, organise interim inspections, source and reference tenants and undertake other tasks, freeing up your time and reducing your workload.

Use a guaranteed rent scheme

A guaranteed rent scheme like the one offered by City Borough Housing not only provides you with a monthly rent by standing order even during void periods, but also a comprehensive property management service, all-in repairs and maintenance, quarterly property inspections and a guarantee that your property will be returned to you in its pre-let condition at the end of the agreement, allowing for fair wear and tear.

If you’re a landlord wondering “Can you rent multiple properties at the same time UK?” get in touch to find out more about how a guaranteed rent scheme can save you time and money, and get your free rental valuation.

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