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

SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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