If you’ve had success in renting out a buy-to-let property you may be considering growing your property portfolio. If you are thinking about expanding your business, we’ve put together a few things you’ll want to consider before buying your next property.
Have you done enough research?
The first thing you’ll need to successfully grow your property empire is an understanding of the market and a way to assess how the market is going. There are numerous factors that can affect the state of the property market, which is why laws, taxes, inflations rates, mortgages and interest rates constantly change. Before making the jump into buying your next property you’ll want to calculate whether it’s financially worth it, and whether the property you have chosen has the potential to make a high ROI. An accountant will be able to assist you, but you’ll also want to liaise with a company which specialises in property and asset management, as they’ll have the expertise and resources to maximise your investment.
Are you going to diversify or monopolise?
When thinking about the next property to add to your buy-to-let portfolio you’re going want to ask yourself whether you want to specialise in one specific market or location, or if you want to completely diversify your portfolio and go for something different. There are benefits in both diversifying and monopolising. For example, diversifying your portfolio can enable you to reach untapped markets, and can be seen as attractive by investors. However, you may want to stick at what you know, and are comfortable with, specialising in a specific property type or region.
Would it make sense to partner with someone else?
Getting a business partner may help to speed up the growth of your property portfolio. You may want a business partner who acts as investment partner to help you raise the capital you need. Alternatively, you may want to go into business with someone who can help you maintain and manage the property, such as a tradesman or property management company.
Do you need a lettings agent?
Lettings agents will specialise in getting buy-to-let properties tenants. You may want to consider having specialists handle your property portfolio in order save you time and maximise your return on investment.
If you’re looking for a lettings agent or a reputable company to help you manage and grow your property portfolio, then get in touch. We have a highly skilled lettings department who have brought in millions of pounds of rental income for landlords across prime London for over seven years.
