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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milessgabriel
milessgabriel 05 Dec 2016

Useful article

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Spencer Fortag
Spencer Fortag 30 Nov 2016

I am glad that someone listened to me!

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warren
warren 08 Nov 2016

There you go buddy :)

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Agent_PeeBee
Agent_PeeBee 07 Nov 2016

Any reason why my comment to this 'article' has not been published?

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