How to Build a Property Investment Portfolio

Reduce the Risks

It is not advisable to try to build a large property portfolio overnight. Instead, it is best to start small and build a portfolio gradually. This will help to manage the risk and avoid overextending financially. Property investment is a long-term strategy and if the investor rushes, they may find holes in their strategy early in their journey, which could become very costly. However, if an investor starts their journey with one or two properties, and solidifies their investment plan, they may be able to transition this over to property 2 or 3.

Despite this, some investors may benefit from industry advice from a seasoned professional within the property investment industry. In this case, the investor may be able to construct a strong plan which allows them to build a property investment portfolio immediately. This can involve a diverse portfolio of properties in powerhouse locations or block investments.

Successful Management

Much like owning several small businesses, having multiple property investments can be a lot of work. Managing the lettings and maintenance of each property is not an easy task, taking considerable time and cost to keep each property in good shape. Therefore, it may be beneficial to use the services of a property management company. This will offer the landlord a hassle-free experience.

A property management company will tenant the property, handling all enquiries and referencing. Then the management company will handle all rental income, creating a comprehensive breakdown of income and costs. Furthermore, the management company will deal with all maintenance and repairs using trusted local tradesmen to find the landlord the best price. Ultimately, most investors are far more comfortable using a reputable property management company to handle their property portfolio as they can manage far more properties, at a lower cost full-time.