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Are you getting the best possible return from your rented property?

There are two sorts of investors: passive and active. Which sort are you, asks Jamie Langley. And is it holding you back from maximising on your investment?

Whatever you invest in… the stock market, savings accounts, even vintage wine or stamps… you can take one of two routes: passive or active. The first type of investor looks for safe places to put their money and leaves it there; the second is constantly looking for ways to make their asset work harder.

That might mean cashing in one asset that has “topped out” in terms of growth or return, and investing in another that promises to perform better.

Or “switching horses”, and getting someone else to manage your asset for you because they appear to have a better grasp of the market.

Yes, there are possibly more risks attached to active investing, but it’s the proven way to achieve higher returns.

And nowhere is that more true than in the world of buy-to-let property investment.

There are landlords who are more than happy to keep their property with the same agent, and to keep paying their fees, without ever questioning if they really are getting the best possible return…

And that’s a shame. Because our experience is that there are usually lots of ways to improve a landlord’s return. And that process shouldn’t stop once you’ve won their business.

For instance, every property should be subject to a regular rent review. Fail to do that and you may well miss the opportunity to keep pace with the ever-changing market.

On top of that, every time one tenant moves out is an opportunity to look at a property before the next tenant moves in and consider: what investment could be made to improve its “lettability”, its rent and its long-term capital value?

That’s the approach we take with our clients. And, because we are so in tune with the local market place, we can advise on more fundamental changes too, such as whether they should shift from – for example – a single let to a multiple one, or the other way around.

Or point them towards the best buys when they have the opportunity to add to their portfolio.

But as a landlord, getting the very most from your investment can also be a simple matter of ensuring you have no void periods. A month between lets could take a big slice out of your annual income – and net yield. A good letting agent will provide honest advice on the best rent to set, not make hopeful promises that leave the landlord footing the bill.

And of course, a good letting agent is also so dynamic in their marketing that they keep long lists of pre-qualified tenants waiting for the right property.

So… active or passive… which sort of landlord are you?

 

If you’d like to know what having YOUR property portfolio actively managed could do for your investment returns, get in touch for a free appraisal.

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