Building a buy-to-let property portfolio

Starting a buy-to-let property portfolio can be difficult, but not impossible. At CIA Landlords, we have offered insurance cover for so many properties of this type, that we are well aware of the intricate process of building a buy-to-let property portfolio.

The buy-to-let market is always changing, so it’s important to stay ahead of the curve. Make sure that, when you decide to build this portfolio, you’re well aware of the challenges involved! So that you’re well-prepared, we have outlined the step-by-step process of building such a portfolio.

By following these guidelines, you’re sure to create a profitable portfolio that you, as a budding property owner, can be proud of.

Getting advice

Advice should be your first port of call. Learn from the professionals around you! It’s certain that building your portfolio will cost a substantial amount of money. So, listen to financial advisors and local brokers. These are people who understand the value of a buy-to-let property, and whether it is worth buying. Their advice can strengthen your portfolio massively.

In the event you don’t want to pay for the advice of a professional, consider doing some reading yourself. There are various books on property investment available, and they can provide comprehensive guidance on how to get started.

Find a mortgage advisor you can trust

If you want to mortgage a property for your blossoming portfolio, it’s essential to find a mortgage advisor you can trust. Knowing everything you need to know about your money and finances is crucial to keeping your portfolio going in the long term. A good mortgage advisor can plan ahead with you, for the future.

Specifically, a buy-to-let mortgage means you can borrow money to purchase a property to rent out. You don’t have to live in this home yourself! When you seek the help of a mortgage advisor, don’t overlook this option.

Use the right letting agent

Many landlords rely on letting agents for the management of their property, including important tasks such as the collection of rent and finding tenants. If you’re purchasing multiple buy-to-let properties in order to build your portfolio, it’s wise to use a letting agent that you can depend on.

Letting agents take the stress from arranging a let off your shoulders, allowing you to enjoy the profit from your portfolio. Build a positive rapport with an agent of your choosing, and they may be able to handle every property in your portfolio.

Don’t overspend

Don’t make the mistake of investing too much in a buy-to-let, too fast. Not only is the market extremely changeable, but your money is precious! You will be earning far less from your future rent if you pay out too much early on.

Instead, search for the most reasonably priced property on the market for your needs. Even if a given property may need a little renovation, the right choice of property will recoup the money spent soon enough. Rent out as soon as possible to get a swift and reasonable return.

Take your time

There’s no need to rush into building your buy-to-let portfolio. With the looming spectre of a housing crisis, we can understand if you’re eager! Buying houses as soon as they come on the market is a tactic many property owners have mastered in order to secure a place.

But, buying quickly also means you may have to buy twice. Be sure you are well aware of any issues with the buy-to-let you are about to purchase, and you’ve sought appropriate advice before you sign a contract.

Cash in on your current profit

If you have one or two buy-to-let rentals that are currently flourishing with tenants, why not cash in on your current profit? If the price of your current properties is rising, you could use this new capital to make new purchases elsewhere.

Building your portfolio is often a cycle of investment and reinvestment, and that’s how you keep growing in the long term. By branching a portfolio out into new residential areas, you can expand your own potential for a good return. Don’t limit yourself to what you currently know, as long as you have the right support to inform your purchases.

Don’t forget to insure yourself

Landlord’s insurance is a must for any buy-to-let property you intend to advertise to tenants. A lot can happen during a tenancy, and it’s important to prepare yourself for any event. Here at CIA Landlords, we can help find the right cover for you. Whether you have concerns about accidental damage or you’re floundering about contents insurance, CIA Landlords has you covered – now and in future.

Whilst there’s no legal obligation to have landlord insurance, why take the risk? This final step secures your buy-to-let portfolio, for good. So, what are you waiting for? Get in touch with CIA Landlords today by calling 01788 818 670, requesting a callback online, or, if you are ready to take the next step, get your personalised quotation here. Our experts are always on hand and more than happy to assist you in any way we can.