Top tips for landlord profit protection

Top tips for landlord profit protection

Peter Armistead is a property investor with 80 properties in Manchester and has put together some options that landlords can consider to protect their profits.

• Review your properties and see if you can get planning on an existing property to increase its value, by adding an extension, or converting the cellars?

• If you have a one bedroomed property, can you make it into a small two bedroomed property?

• If you lack building skills/knowledge, but have equity or cash, maybe partnering with someone more skilled in building/renovation work would be profitable.

• Consider changing a house into an HMO and increase the rental income.

• There is a real shortage of properties right now and prices are at a record high so consider selling some stock.

• The tax changes don’t affect Limited Companies.  Consider setting up a Limited Company and using this structure to hold your properties.

• Are you an active or passive investor?  Passive investors will get hit hardest by the changes.  Maybe active investors can find deals for other investors and create income streams there.

• It will become far more important to buy property below market value. You can’t just buy a £1 of property for a £1 anymore.  Buying with a built-in discount will help ensure your investment is just that (ie an investment)

• Consider other specialist areas of property investment which compliment traditional BTL.  For example, can you manage properties for other landlords and charge a fee for that service?  Can you sack your lettings agent and do the job yourself or use a cheaper online lettings agent?


Peter says: "If investors can purchase cheaper properties with better yields, they will have the opportunity to protect and boost their profits in the longer term. Certainly the recent changes have made it a lot harder to make money in BTL.  But where there are challenges, there are opportunities if you can think outside the box.”
 

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Latest Comments

AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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property guru
property guru 11 Jul 2016

Surprise suprise

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CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

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Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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