If you are like most people in the UK, property investing is an interesting direction with a pension in mind. You might be really excited about the idea of buying rental property and receiving a nice monthly BACs payment. But what do you do if you aren’t fully able to do so and manage the property and its management? Maybe you have limited knowledge or expertise when it comes to real estate. Perhaps you want to invest outside your local neighbourhood or out of London….or maybe you live overseas? People interesting in getting an additional monthly income look often turn to turnkey investing deals. Probably every investor in the property field also realise that HMO properties…both Professional HMOs and Social HMOs are more profitable than buy to lets.
Management is the key in Professional HMOs. If a Professional HMO is not managed correctly it will fail and become a nightmare. Contrarily, Social HMOs are on 5 year leases with management covered.
Getting back to turnkey property…How do you proceed. Yes, there are so many sourcers out there and you can do it ( Attempt to do it) yourself….It is one thing to manage a refurbishment…but a completely different world managing there after. Yes there are estate agents that promise they will manage the refurb and tenant the property & management. In all honesty I have heard so many stories where the reality has been something different. Even some of the well known people on the property circuit have let some property investors down.
If so, the question becomes how to make sure your potential turnkey property partner is reliable. There is really simply one way…Ask for references!! You want to ascertain that the level of works were completed properly and with Building regs and how the management has been. You want to hear that it has been a smooth transaction.
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