Navigating the Property Management Rollercoaster: Lessons Learned from 43 Years of Ownership
I’ve been in the property investment game for 43 years, and let me tell you, it’s been a rollercoaster ride. From booming markets to market crashes, I’ve seen it all. But through it all, I’ve learned some valuable lessons that I want to share with you.
Don’t Get Carried Away with Debt:
One of the biggest mistakes I’ve seen (and even made myself) is taking on too much debt. Those “investment seminars” might hype up high gearing, but it’s a risky strategy. Keep your loan-to-value ratio low. It’s your safety net when things get tough.
Go Beyond the Minimum:
Banks have minimum rent-to-repayment ratios, but don’t just meet the minimum. Aim for 2.5 times the repayment. This buffer will keep you afloat even if you have a few vacant months or unexpected expenses.
Diversify and Invest in Quality:
Don’t put all your eggs in one basket. Own different types of properties. This spreads the risk and keeps your income stream stable. And prioritise quality tenants. Invest in properties that attract responsible people who are willing to pay a bit more. They’ll stay longer, saving you time and money.
Future-Proof Your Investments:
Upgrade your properties with energy-efficient features and modern amenities. This increases their value and attracts better tenants, while also saving you money in the long run.
Be an Active Manager:
Regularly inspect your properties, whether you manage them yourself or hire someone. Catch problems early before they become major headaches. And if you use a property manager, make sure they share your goals and are proactive in maximising your returns.
The Takeaway:
Property investment is a marathon, not a sprint. Be cautious, strategic, and forward-thinking. By following these tips, you can build a strong and profitable portfolio that will last for years to come.
Our team emphasise a forward-thinking approach, guiding our clients to build a robust and profitable portfolio. We prioritise sharing our years of experience, ensuring you are well-equipped to navigate the complexities of property ownership.
Contact us at 01482 342155 for an informal discussion regarding how we may assist you. We are eager to explore potential ways to support your needs.
Chris Hodgson
Managing Director at Let’s Rent / The Hull HMO Agency
