Getting the most from your buy to let investment
On a regular basis we are asked “how do I get the best return for my buy to let investment? “.
Firstly, we must understand that a buy to let investment is a business. The business of buy to let is to deliver a product and service, if you deliver a good product with a good standard of service you mitigate any potential risks which may come your way.
Of course, any buy to let property comes with the associated risks of the industry, the same as any investment type comes with some form of risk whether this be high or low there is still an element of risk.
The formula is actually very simple, it involves two parts.
1. The product:
The product which is delivered is an essential part of the business, if you deliver a poor product you will ultimately get poor results.
The delivery of a good product works in multiple ways. The first way it works is to attract a better standard of a tenant. The second way it works is to attract a better mentality. Human nature dictates that if something is nice, we want to keep it that way. Ultimately, how can you expect a tenant to respect something that you have not respected yourself and put in the work to be a good buy to let investor. Lastly, and sometimes most importantly, the overall value of the property will be increased and the value of the rent will be as high as possible thus maximising your return.
Long gone are the days of buy and forget, most markets across the UK are now full of attractive properties which have been fully refurbished and maintained to a good standard. Tenants now have an abundance of choice and can be very picky about where they choose to live. So now is the time to compete for the good tenants, good tenants who will pay their rent on time and care for your property as if it were their own need to be seduced. The delivery of a good standard of property is a sure-fire way to start attracting the best tenants available for your buy to let investment.
2. The service:
One often overlooked the element of the buy to let industry is the delivery of service.
A quality managing agent is an essential part of the formula to protect your investment and ensure good levels of return on a regular basis.
With the introduction of increased legislation, rules and requirements which need to be adhered to within the private rented sector a good quality managing agent is a must for any serious buy to let investor.
A good managing agent should be able to ensure you are fully compliant at all times whilst servicing your tenant to a very good standard. This level of service has two elements, the first element of having a good level of service will result in a much higher retention rate and much fewer void periods. The second element is that your property will be cared for to a high standard.
Please see our other blog on selecting a good quality managing agent and the clarity on the costs associated.