If you’ve been sat on a pot of money over the last couple of years, you may have noticed that not much is happening to it. With interest rates at an all-time low those traditional savings accounts aren’t doing much to help careful savers stay ahead of inflation.
However, you might also have heard that those using their savings to invest in property have enjoyed unprecedented success. That’s largely because with borrowing cheap, more people have been looking to buy homes – either for themselves or as a buy-to-let option.
Having a portfolio of homes under your belt can be extremely rewarding, especially when you have an effective property management service on your side. If you’re considering adding residential properties to your portfolio, here are some of the reasons why it might be a good idea.
You can enjoy a consistent cashflow
Real estate investment requires you to have your finger on the pulse at all times. With the support of a specialist property management company you can effectively let and manage tenants consistently to ensure that you not only secure a steady income but also retain happy tenants. Working with a property management team also means that owners don’t need to handle the day-to-day stress of issues like maintenance work and repairs or regulatory compliance.
Of course, you’ll still need to put the work in. It’s important to always go into a new investment with your eyes open and a clear overview of the demands of being a landlord. However, finding the right property management partner can smooth the process and make sure that the rewards are consistent and substantial.
Investing for appreciation
Appreciation refers to the increase in value of a property over a specific period. So if you’re looking to resell a property in the future, getting familiar with appreciation predictions can help you enjoy higher returns down the line. It’s important to note that property values fluctuate over time. There are no guarantees when it comes to the housing market but history tells us that property values do have a habit of increasing substantially over a 5-10 year period.
If you give your property a ten year forecast, for example, you can track its growth at a steady rate, monitoring the potential returns in the event that you want to sell. If not, you can simply manage and increase your rental prices in accordance with the property price.
Get help where it’s needed
Ask any landlord, and they will tell you how managing a property can take up a lot of time, effort and dedication. It’s all too easy to become overwhelmed by the ever-growing to-do list that comes when you first start investing in property, especially if you’re trying to balance a day job at the same time.
That’s why many investors a in the industry choose to outsource their property management needs to a trusted third party. Property management service providers like Atlas Lane Property Management are able to take your property responsibilities in their stride and meet tenant demands, as well as completing other tasks like condition reports and maintenance management.
If you have aspirations to grow your portfolio it becomes ever more important to have the expertise of property specialists on your side, because you don’t want to be limited by the number of properties you can personally oversee. Instead, draw on a dedicated agency able to source the best tenants, manage your properties with care and handle the administrative elements that would be a drain on your own time and resources.