Tips for Successful Property Investing

from How To Make Profitable Property Investments in 2023/24

Understanding Property Cycles and Market Trends

Property investing can be a lucrative way to earn money, but it’s not without its challenges. Here are some quick top tips to help you make successful property investments in 2023:

1. Keep your properties in good shape. Tenants want a comfortable and safe place to live, so make sure your properties meet their requirements. This means keeping them well-maintained and ensuring they’re up to code. This may sound obvious but this is important whether its a long-term rental or a short-term letting property, as your tenants and their happiness is your potential income. For long-term buy-to-let properties, your tenants are likely to look after the place better if its in decent condition at the beginning of the tenancy. If you are going down the short-term letting and holiday let route then reviews can make or break a successful STL property investment, if the property is in poor condition then you are more likely to receive poor reviews and tenants will not want to book your property in the future.

2. Practice good tenancy management. Whether you manage your properties yourself or use an agent, it’s important to be responsive to tenant needs and maintain good communication. Happy tenants are more likely to renew their leases. There is a lot to consider when managing a property so consider using an agent to manage your investments, however ensure you factor this cost into your figures. Your time is also expensive and a good management agent can free your time, and cost you less in the long term.

3. Know the rules and regulations. Keep up to date with the latest laws and regulations affecting your properties, particularly if you self-manage. This will help you avoid costly mistakes. If you are new to property investing then it's a good idea to speak to an agent, or spend your time researching, Google is your friend.

4. Be prepared to deal with problems. No property investment is without its challenges, so be ready to address issues when they arise. Having a plan in place can help minimize disruption and maintain your reputation as a landlord.

5. Have your finances in order. This means having a clear understanding of your expenses and income, as well as access to capital for emergencies or new investments. As discussed earlier, it is a good idea to build a 'pot' of funds that you can draw on.

6. Carefully consider your goals. What do you hope to achieve with your property investments? Is it short-term cash flow or long-term appreciation? Understanding your objectives can help guide your investment decisions. Speak to a financial expert who can help you work out the best goals for you.

7. Research the best areas to invest. Consider factors such as regeneration, population growth, job growth, and affordability when evaluating potential markets.

8. Begin with a small investment portfolio and grow from there. Starting small allows you to learn the ropes without risking too much money upfront, especially if this is your first property investment.

9. Consider who your tenants will be. Different types of properties attract different types of tenants. Be sure to choose a property type that aligns with your target market, investment type, location and tenant type/demographic all go hand in hand.

10. Diversification is important. Don’t put all your eggs in one basket. Investing in a mix of property types and geographic locations can help mitigate risk. Like all investments, there is nothing guaranteed, investing in different investment types as well can spread your risk.

11. Consider hiring a property management company. If you’re not comfortable managing your properties yourself, consider outsourcing to a professional management company.

12. Think about an exit strategy. What happens if you need to sell your properties? Having an exit plan in place can help you navigate unexpected changes in the market. An exit plan doesnt have to be to sell, it can also mean to change direction, for example if you are considering a short term corporate let, then look at the long term rental market as well in that area, just as a back-up option.

13. Try to avoid getting a buy-to-let mortgage. These types of mortgages often have high fees and interest rates, making them less favourable than other types of financing options.