#MidweekTopTip – Just forget it .. Let me explain the strategy!..
Good Afternoon ,
We are regularly approached by investors across the whole of the UK who share their stories and give the reason why they invest or are going to invest in property.
Midway through February and we have attracted 161 new visitors to our website, this is very high and with those readers being new visitors we want to share a mindset that takes amateur investors years to figure out.
Usually, when it comes to “why” the main factor is either Time or Money.
The time for you to enjoy with loved ones or the money to allow you to have more time to do the things you enjoy.
This weeks #toptip will be pinning down the strategy in creating efficiency in your property portfolio, no matter the size.
Portfolio Rules –
This is quite basic, but there are many landlords who do not do this, and are confused or illuded to think that their property or portfolio of properties are at peak efficiency.
There are simple steps that you can do so that you can forget about it on a day-to-day basis.
The Setup –
Ensure your account with all of your property expenses are set to have a lot of activity within a small period of the month. e.g. Rent due 1st of the month. All mortgages and operating expenses debited between 2-5th of the month.
This will allow you to have very little/no activity in your account between 6th- end of the month.
There are so many investors and landlords with multiple properties managing property accounts every week of the month. e.g if you are aspiring to have multiple properties you need to invest more of your time to manage.
- Multiple tenants to understand and manage
- Multiple rents to collect and administer
- Multiple mortgages to pay
- Multiple sets of maintenance to attend to
As I mentioned previously, more money should equal more time, so the setup is extremely important to ensuring that you will have a life to live. Property can be great, but this can only be the case if the starting point is correct.
The setup is about knowing what to let go of and what to control to ensure you simply let the money roll in and the freedom roll out.
Property is a slow moving wealth vehicle, which can change in an instant , with the market moving gently forward, occasionally pausing and perhaps stepping back but typically upwards for the majority of the time.
Understanding the mechanics of your portfolio during this time period and periodically resetting and managing the efficiency by managing your monthly running cost by comparing prices and keeping costs low.
The second part of maximising is understanding the property/product you are offering to the market, the strength of the demand in the area in comparison to the product you are offering to the market and the tenant type you wish to attract.
There are a tonne of landlords settling for below the market rent, or are investing based upon achieving a market rent figure without understanding the quality of the product they offer.
Look at the chart above :
- Low demand areas require high quality of product to achieve market rent.
- Medium demand areas require high quality of product to achieve market rent.
- High demand areas can survive on supplying low/medium quality product to achieve market rent.
Stay in line with the market trends and ensure the quality of your product is suitable for the market you are in.
And most importantly, If you master the “setup” and get the “quality” of product right… The only time your letting agent should be in touch is if you tenant decides to serve notice; giveing you more time to spend with the ones you love and more money to do the things
Look out for next weeks #MidweekTopTip!…
Take action: CALL FOR A CONSULTATION
Or call: 0191 491 0344 and ask for Mike Bell
Investment property that will run itself letting you do the things that you enjoy
NGU Property Investments
Investment Property That Will Run Itself, Letting You Do The Things That You Enjoy