Hands on vs. hands off property investment

Graham Davidson, Managing Director of Sequre Property Investment, shares his thoughts on the benefits of using a specialist service when investing in buy to let.

Graham Davidson
21st January 2015
Graham Davidson

Whilst there are plenty of people out there who feel comfortable in sourcing, purchasing and managing their buy to let property investments, we find that there are also a vast number who really benefit from a ‘hands off’ service that companies like Sequre can provide.

If you have the time and the inclination then a ‘hands on’ investment can work very well and can prove very satisfying. However, it’s important to remember that being a landlord also comes with the responsibility of providing a service and, with this service, a whole host of legal obligations to your tenants.
 
Managing a property can be time consuming; you will need to consider factors such as tenant checks, the logging of tenant deposits not to mention rent collection and dealing with the day to day problems that are part of managing a property that someone else lives in. You are effectively providing someone with a home that needs to meet many requirements and remain suitable to live in at all times.

Many find that the responsibilities and time requirements are too much, particularly if they work full time or have other time consuming projects on the go. This is where an ‘armchair’ or ‘hands off’ investment service can add real value to an individual who wants to purchase buy to let property and effectively become a landlord, but who simply doesn’t have the time or experience to manage by themselves.

Finding a locally-based agent who can provide a full management service for a small percentage of the property’s rent, once the purchase is completed, can solve this problem. At Sequre, we have excellent relationships with local property management companies, and we find many of our investors benefit from using their services.

If you are thinking about using an agent to help you purchase or manage your property, then I would recommend keeping the following in mind:

- Be conscious of upfront fees. At Sequre, we do not charge a penny until a sale is completed and our client is the legal owner of a property
- Do they have a strong track record? Make sure you do your research. Are positive things being said about them in the media or on online forums?
- Ask them to meet you face to face and also visit their properties if you can; you’ll get a true feel for their quality, location and suitability
- Are they a member of the Property Ombudsman Scheme? This is the industry gold standard and a measure that they are reputable and trustworthy.

With a ‘hands off’ investment you will still need to be involved to some extent, but if you use the right agent then you can rest assured that your buy to let investments will be looked after professionally, generating the right returns for you.

One final point…

When deciding on the options it is important to check the conditions of your mortgage, some mortgage providers stipulate that a management or lettings agent must be used when investing in a buy to let property. If this condition is not stated then the decision is down to the investor’s preference and view of their investment.

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