Issues that Can Kill Your Property Business of Buy to Let or Professional HMOs

I have been in property since 1994. I have done many aspects of property. Only in the last couple of years have we invested in Professional HMOs. However all property investments are similar. Seems it all boils down to that I must focus on people. People make the deals work or people collapse even good deals. The hardest part I have found is that people keep to their word and tell the truth. Too many do not look at the big picture.

Property is a long term is a marriage; not a date. In order for you to have success owning rental properties or even flipping Professional HMOs you have to have the right people in place to work with you for an extended period of time.

Surround yourself with these key people:

These key people are

1. Attentive solicitors that communicate
2. Property managers that IMMEDIATELY get back to you either by whatsup or email….not days later!!!!!
3. Goes without saying a good accountant
4. Fair and honest builders who look long term to grow both your business and theirs.
5. Good tenants who have been screened appropriately ( still no 100% guarantees even with that)

More so to mitigate issues….Myself and my JV partners…Look to have all the plumbing and electrical be redone (especially if you are buying distressed or vacant homes that have been sitting vacant for a couple years). We are always bringing properties back to the brick. Sometimes need be we do full damp courses as well. We want our tenants to be happy and complaint free. We do not skimp. Skimping only costs more money down the line.

Communication is Key

Communication with builders….property managers or even solicitors …this is paramount….Even equal are our tenants. Be prompt at communicating when issues arise. Prompt communication gives people peace of mind. Even if you can’t address the issue right away, they know you are thinking about them. We screen our tenants thoroughly and have no issue declining those who do not cut the threshold or can not provide a guarantor. If there is an eviction, that is a total red light. We recently had a tenant with a CCJ due to a phone issue. We spoke with him and got a guarantor. You want to be human and fair…however evictions are a total RED LIGHT!

Verify wages via pay stubs and call employers. Verify length of employment. Key is to avoid problems before they happen. Property is not easy. It is not a get rich quick nor a BRRR…Buy…Refurbish…Rent…Refinance ( to the sky). Liquidity is the key…..

Your thoughts???