How to Grow Your Property Profile: A Landlord’s Guide
Owning and managing multiple properties that you have let out is a great business model. If you own properties in popular areas and keep them in good condition, you are always almost guaranteed to have tenants living there. This means consistent income you can rely on, and that is not something many business owners can boast.
In the UK, managing such a property portfolio is becoming increasingly difficult, as new rules come into play to encourage more Britons to own their own homes instead of renting for their entire lives. This does not mean it is impossible to build up a profitable business, just that you need to be aware of the changes and the opportunities available.
Understand How Buy to Let has Changed
Buy to Let has changed drastically in the last few years, to the point where many landlords are finding it difficult to make ends meet. This is to combat the trend of people buying properties just to lease them out, and in turn limiting the property market for buyers. It is a good move overall, but it does make it more difficult as a landlord to turn a healthy profit.
Costs to Consider
There are other costs to consider as well.
Cost of Mortgage
Cost of Maintenance
Cost of Redecorating
Cost of Letting Agent
Cost of Landlord Insurance
Cost of Buy to Let Stamp Duty
How to Save and Make a Healthy Return
With so many costs piling up against you, you might wonder if it is worthwhile to invest in the property market at all. Though the strategy will be slightly different, the answer will always be yes, you just need to be aware of the costs ahead of time so you can prepare and better understand when a property is a good investment or not.
Flip Properties for the Best Results
For the best results, you want to look for properties that cost the least. A buy to let mortgage won’t cover the cost of renovations, so having a healthy savings account to accommodate the flip is a good way to start. If that is not an option, then a personal loan to cover renovations is a must.
The reason to flip houses is that you can save a lot on your mortgage and other upfront fees. You can then flip the property and rent it out at a premium.
Use Conveyancer Solicitors to Improve the Process
When looking for good investment opportunities you will need to work with conveyancer solicitors to help you with the buying or selling of a property. Obtain an instant online conveyancing quote ahead of time so you can budget it in beforehand and better manage your properties as a result.
Invest in an Accountant
There are a lot of costs associated with being a landlord, but there are also a lot of tax breaks. To take advantage of all the tax breaks available, you will need to use a good accountant who specializes in property law and taxes to keep your books in order.