Build your buy-to-let portfolio

Like most things in life, building your buy-to-let portfolio is more than achievable if you break it down into simple steps and take advice when it’s needed.

The first step is of course to choose and buy your property. Consider what type of property is suitable for you, making sure to factor in your long term goal. You may wish to purchase a new or modern property or modernise one bought at a lower price in order to minimise future overheads such as unexpected maintenance costs.

Make sure that your buy-to-let is appealing to tenants, who will likely be looking for a good commuting location near amenities. Currently, outside space and two-bedroom properties are very popular, with tenants searching for a bit more space whilst working from home or moving out of the city.

Seek advice to avoid making mistakes or missing a significant element that could impact you in the future.

Secondly, the upkeep of your property is of course an important step. It is vital to keep control of any issues that may arise, but this doesn’t necessarily have to take up a lot of your time. It is important to weigh up the costs, and decide how much contact you wish to have with your tenant. You need to make sure your agent is meeting your expectations and delivering the quality service you need.

We offer a variety of packages to help manage your letting, with whatever style of service is suitable for you. Furthermore, our agents are fully qualified by Arla Propertymark, meaning you can rely on our efficiency and ability to keep your property compliant with government regulations.

Reinvesting is the next important step once you have established your first buy-to-let.

Do you wish to diversify, or alternatively stick to a similar type of property as before? It is important to retain momentum at this stage by keeping focussed on your long term goal, whilst possibly adapt it to any changes that may have occurred since the beginning of the process. Make sure that each property you purchase fits in with your plans.

Lastly, most landlords wish to eventually sell their properties, at a profit on the original price. This might even be with the end purpose of purchasing a higher-end buy-to-let.

It is important to sell at the right time to maximise profitability, consider what impact taxes and what the direction of the local housing market might have on your sale. Our Lettings Department can provide the know-how you need at any given stage of your buy-to-let process.

Mike and his team are available for advice and further information on (01252) 514000, lettings@mackenziesmith.co.uk.