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Why Strategy Means Success In Buy-To-Let

Why Strategy Means Success In Buy-To-Let
Buy-to-let. Even now, it is mistakenly associated with getting rich quick and with millionaire landlords. Yet this viewpoint is far removed from the reality of property investment in the UK today. The fact is that property investment is not as easy as it used to be. It’s a fast-evolving and challenging world and the changes brought in by the government aren’t making it any easier. Private landlords are gradually being pushed out of the market. While there is still a lingering pre-conception that buy-to-let is a get-rich-quick scheme, the opposite is true.

It’s all about tactics

Making money from property is a long-term process, but many aspiring landlords are still overlooking the fact that they need a strategy. The crucial aspect is how long they plan to be in the market for. So instead of seeing the long-term view, they only see the potential income. But without that long-term plan, landlords are unlikely to maximise their income from their properties. This is why, at Blue i Properties, we ask our landlords what their strategy is and what their timescales are. This is often the first time that anybody has mentioned strategy and timescales and it can catch them off-guard. Once we have explained their importance and what is involved, they understand that in this extremely dynamic market (which is becoming more and more competitive) this is essential. It is absolutely crucial that we have an agreed set of tactics to enable each of our landlords to get the best from their properties whilst meeting their legal responsibilities.

Changing market forces

A long-term strategy allows room for landlords to adapt to changing market forces and tastes. By constantly monitoring the market for opportunities and threats, we can ensure that your property continues to perform at its best. We are sometimes brought a property where these aspects have not been thought through and the conversation can end with the conclusion that the aspiring landlord has bought a house (sometimes purchased at a carrot-friendly price) in the wrong location. It is crucial that, where markets are changing so quickly, almost on a daily basis, our collective experience and knowledge is used by landlords. It is no use us having a house that is going to be difficult to let or at a rental income lower than budget when, with a little care, the situation could have been so much better. This is something we do for our landlords and which they find very valuable.

A different culture

Another issue landlords have to contend with is that advances in IT and technology are changing dramatically. This is having an effect on the whole culture of how tenants find, choose and rent properties. It’s a completely different world from the way people used to rent in the past. That’s why it’s so important that landlords take these changes into account to ensure that they reach the right potential tenants and keep them happy in the long-term. This is something we take into close consideration at Blue i. We find that London-centric property articles are useful for information, but no good for Derby, where the market is so very, very different.

In our view, the life of the landlord is intrinsically tied up with their investment. This is what we always keep in mind to help landlords get the best return from their properties, whether they have a portfolio of properties or one house. Because when it comes making a success of being a landlord, strategy - not short-termism - is what makes for success. Getting into bricks and mortar is a great idea, but choosing the way you’re going to go about it starts with selecting an agent you can trust and who doesn’t just see you as a cash cow. Give us a ring. You’ll be glad you did because we’ll give you lots of information and questions to consider, before we get close to signing any contracts. You wouldn’t buy a pair of shoes without trying them on or purchase a car without a test drive. Managing your property is exactly the same and you should test drive the agent by assessing their approach before signing any contract.
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