How can property investors build a buy-to-let portfolio?

26/04/2022

In recent years, investing ‘buy-to-let’ has been seen to be a sure thing when it comes to making money. Mortgage rates are at historic lows and rental yields are increasing. 

However as you can imagine, there are some stepping stones to take when considering a buy-to-let property portfolio. 

Here are some of our tips that will stand you in good stead when it comes to starting or optimising your buy-to-let portfolio. 

1. Start with something solid

When establishing your property portfolio, it is a necessity to start off with a solid foundation.

Your first property is arguably the most important one. Starting off on the right foot will make your life a lot easier as time goes on and more properties are added to your portfolio.

2. Think ahead

To ensure a successful buy-to-let portfolio, it’s important to have the foresight and the ability to think ahead.

Distinguishing between your short-term, mid-term, and long-term plans is crucial if you want to maximise your investment. This allows you to be flexible, should changes in the property market occur.  

It is also beneficial to keep an eye open for new and exciting developments happening around you.

3. Get some advice

More often than not, prospective property buyers try and go it alone, only to fail in the end. To avoid this, seek advice, listen and learn.

Get financial advice from a reputable broker but also  read books, online articles, and blogs to advance your knowledge before investing.

4. Timing is everything

Peaks and troughs in the market come with the property investment territory. Successful investors build their portfolios at the right time and stick with them when times get tough.

But how can you know when to be bold and when to hold on? Firstly, it is beneficial to study previous market trends as well as to examine what is happening in the areas you have invested in.

 5. Gain a demographic

Knowing who your tenants will be will give you greater insight when buying a new property.

Is your potential property close to schools and therefore are you targeting families? Or are you aiming more toward young professionals because your property is near the financial district?

By knowing these things you can plan your investment accordingly to target the right demographic. The more you know about who lives in the area you plan to invest in, the better.

6. Be a great landlord

Your main goal as a property investor is to receive  rental incomefrom your properties. Therefore without tenants, your buy-to-let portfolio cannot survive.

This just shows how important it is to keep loyal tenants, so you are not left for periods with no occupancy. By going the extra mile and doing all you can to keep your renters happy, you avoid these dreaded void periods.

For some tips on how to make your tenants happy go to our recent blog post “Best intangible features you need to attract tenants” – https://www.londonshared.co.uk/news/top-intangible-features-you-need-to-attract-tenants/

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