Passive income streams are a fantastic aspiration to aim for and can be possible as an investor if you build and manage your property portfolio.
Investing in property that has a positive cash flow (i.e. one that has a higher rental income than expenses) allows you to reinvest quickly thanks to the leverage and equity you will have, and that means faster growth for your property portfolio.
However, the road to getting there can have a few bumps in it. There are, after all, legal stipulations, local government regulations and tax guidelines to navigate your way through, all of which we as property consultants are always on hand to help with for any advice or expertise.
Being Organised Is Key
The more properties you acquire in your property portfolio, the more need you will have of a system to keep everything in its rightful place and to make sure it’s accessible when you need it.
That means ensuring you have paper and (especially) online copies of all inventories, gas certificates and deposit/rent receipts etc. One of the best ways to do this is to use online management software. That way you can also key in dates for crucial flat inspections, inventory checks etc.
Another good reason to use management software is that companies who supply this will often notify you of any changes in the law that may affect you. This is an important add-on to any management package, considering the number of changes there have been for landlords in recent years.
Keep On The Right Side Of The Law
The easiest way to make sure you are complying with legal stipulations is to keep up with landlord obligations as far as the government and your local council is concerned.
Most landlord organisations such as the National Landlords Association (NLA) and the RLA (Residential Landlords Association) communicate regularly with members, especially with respect to changing legislation. There are also plenty of landlord forums out there where you can seek advice from other landlords on property management issues.
We also issue regular updates across our social media channels and newsletter of upcoming regulatatory changes that are likely to impact you.
Keep On Top Of Day To Day Management
We can assist you or advise you on how to keep up with all the tasks that come with managing a property portfolio.
This can range from finding tenants, reference checks, inventory inspection ans safety checks if you are about to onboard a new tenant to dealing with maintenance issues quickly whenever they arise during the length of the tenancy.
Certainly, if you want passive income (i.e. that you don’t have to work for) then we recommend bringing in a property consultant like ourselves to help when building your property portfolio. You might also consider getting in an accountant to help you with tax advice and generally keeping on top of your income and receipts.
Have a read of our guide on How to build a property portfolio and become an investor in the UK
If you are looking to buy an investment property we would be delighted to assist and help you with a ready made team. Call direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.
If you are looking to buy an investment property we would be delighted to assist and help you with a ready made team. Call direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.
