A lot of private landlords fall into the investment by accident – or worse – misjudge the level of risk involved and purchase their property without the correct advice.

Before they know it, they are stuck in a fixed term mortgage with a property that doesn’t cover the mortgage and monthly maintenance – as well as sometimes managing the property themselves…

Here are some ways to take the property you have and maximise the profits from it:

  1. Look at the current structure of the property – is it let to a single family? What are your options in terms of restructuring? can you make some simple changes and earn more rent?
  2. What is the average rent in the area – are you at the top, middle or bottom of this range? How much would you have to spend to move it to the next price point?
  3. What are the outgoings? Have you included bills in your rent? if so, are you on the best tariffs for energy and broadband? Is there any discount on council tax available?
  4. What is your mortgage rate? Can you switch without any fees?
  5. Is there maintenance in the property that is continuously needing to be done which is eating away at profits? Is there a better solution?

These are high level items and each property needs to be looked at in isolation to understand its key risks. The idea is to cover the downside and create asymmetric returns which protect you whilst providing an income.

A successful portfolio is created by having a mixture – like with everything – diversification is key.

Book

If you want a risk analysis of your property portfolio then feel free to book in a session with me here. The first session is free where I will assist you in understanding your key risks.