Maximising investment property returns through professional property management
Every property owner has at some point wondered what it would be like to turn letting into a truly passive income. To watch their property appreciate in value and collect regular rent without any worries. If this sounds like you, we can assure you that it is not wishful thinking, but a sophisticated investment strategy – professional property management. The return on your investment does not depend solely on you and how you look after the property. A significant part is in the hands of your tenants, who can be a truly unpredictable factor.
You have bought a good investment flat at an excellent price, in an attractive location with good transport links and local amenities. You have taken an excellent first step. Unfortunately, even a good start does not automatically guarantee attractive annual returns and long-term investment profitability. Why?
While a favourable purchase is the first and very important step in the overall investment process, you need to do more to achieve an attractive return. Above all, you need to manage the property effectively and find quality tenants.
Gross vs net return on investment
The return on a property investment is determined not only by its purchase price and growth in value, but also by how effectively you are able to let it.
Gross return
Compares the purchase price with the annual rent received.
Net return
The net return is directly affected by the aforementioned tenant selection, the cost of essential and routine repairs, damage caused and regular maintenance. The quality of the tenant directly affects the investment’s profitability. If the wrong tenant is selected, the owner misses out on an attractive return on their invested funds. The same applies where tenant turnover is higher. If you are unable to let the property without delays and there are long gaps between individual tenants occupying the flat, you lose rent for every vacant month.
How can professional property management help you?
If buying and operating investment flats is not your profession, it is advisable to entrust the management of your properties to someone who deals with it on a daily basis. With your consent but without your involvement, a quality property manager can handle almost everything that letting entails: finding a suitable tenant, collecting rent, ensuring minimal turnover, routine maintenance, repairs and all administration involving authorities and utility and energy suppliers. All you need to do is collect the income.
With good occupancy rates, which average 98 % at Bohemian Estates, you can achieve the highest possible return of up to 7 % p. a. without any work or worries. The service therefore pays for itself and helps you increase your profits.