In-depth rental property analysis
Buy to Let Deal Analyser
The difference between a successful investment and a potential financial disaster lies in the ability to analyse a deal thoroughly. This is where the buy to let deal analyser comes into play – it allows investors to analyse a rental property from various angles, preventing bad investment decisions.
What does the buy to let deal analyser do?
No more sifting through spreadsheets and calculating numbers by hand. With this buy to let deal analyser, you can gain a clear understanding of a property’s investment potential at a glance, freeing up your time for hunting down great property deals… or just kicking your feet up.
With the buy to let deal analyser, you gain instant access to a wealth of information, from traditional return on investment (ROI) to more advanced indicators like cash on cash return and internal rate of return (IRR), the analyser offers a comprehensive snapshot of a property’s potential profitability.
Postcode Analysis
The buy to let deal analyser (brought to you by our partner Lendlord) goes one step further by offering a postcode analysis feature. By creating a free Lendlord account, you gain access to valuable postcode metrics that shed light on a property’s local market including its growth over the past five years, whether it’s a buyers’ or sellers’ market, and the average yield in that area.
How to use our BTL deal analyser?
1. Start by entering the property’s address
If you’re unsure how to find the property address, a simple step-by-step guide is available to assist you. The tool will then automatically find the property’s information and fill out some of the fields.
2. Provide the purchase details
Determine the property’s market value and expected monthly rent – helpful guides have been linked.
3. Enter Finance details
Simply enter your LTV, the mortgage rate and other associated costs. If you don’t have any, just look at what products are currently available. If you’re purchasing with cash, set the Loan-to-Value (LTV) to 0%.
4. Monthly operating costs
Providing these will help to calculate your monthly profit – Landlord insurance is a must have and will usually set you back £30 a month. If you opt to use a lettings agent to manage your property, the average management fee is 12% (10% plus VAT). For a full cost breakdown, visit our guide on buy to let costs.
5. Long term assumptions
If you entered the address into the tool, these should have been auto-filled. If not, try to fill these in with what you already know about the postcode or city. For more accuracy, try using Lendlord’s postcode Info tool.
Understanding the Results
As you input the necessary data, the buy to let deal analyser works its magic, calculating key metrics that provide a comprehensive view of the investment’s potential. To save the results or to create a summary report, press the respective button and create a free account with Lendlord.
If the numbers stack up and you’re looking at a great rental property ROI, consider your next steps with our free online financing brokers:
This rental property analyser helps you avoid the pitfalls of bad investments while amplifying the potential of profitable ones. By harnessing the power of data-driven analysis and valuable postcode insights, this tool equips you with the knowledge needed to confidently make an offer on your next buy to let property. For more guides on how to analyse rental property deals, consider the following: