The majority of investors admit that they do not want to deal with tenants in their properties and feel aggrieved by tenants sending them communications regarding problems. The unpredictable nature and sometimes unavoidable problems that occur with dealing with hands-on property can become more demanding than your average 9-5 job.
While it’s always vital to base your decision on whatever situation works best for you, there is little question that if you’re after an income generating, stress free property then the hands-off approach is definitely worth considering.
You can grow a portfolio alongside an existing career
If you are trying to grow a property portfolio on your own (alongside a full time career) this can be incredibly demanding on your time, adding a huge amount of pressure and stress to daily life. Whether developing a property, or simply becoming a landlord, free time in your evenings and weekends will dwindle away with building issues, problem tenants and new responsibilities. This huge time commitment should all be worth it in the long run (as you near your goal of creating a passive income), but there is another way to reach this target without reducing your quality of life to get there. ‘Hands off’ property investments are also called ‘armchair investments’ for a reason. They allow you to build a passive income whilst carrying on with your existing lifestyle, giving you the time to actually enjoy your second income.
The sheer act of not dealing with the running of a property allows freedom to source several properties for a greater income. A hands off landlord can enjoy a low risk, low maintenance investment that makes building a portfolio of properties a much easier course of action.
The key to success in a hands off investment is to find a letting agent you can really trust. A survey from The Telegraph highlighted the value of having a reputable letting agent, who is a member of a registered body such as ARLA (Association of Residential Lettings Agents) or UKALA (UK Association of Lettings Agents), they can be extremely beneficial to investors with more than one property and often provide relief with practical issues. Some even have an out of hour’s service for their tenants.
Opportunities with attractive ROI, Yield & Rental Guarantees
With the property investment market being so highly competitive, it is no surprise that being able to source a great deal is becoming more and more difficult. Securing a BMV property through the open market is still possible, but is often heavily reliant on having strong connections with local estate agents, and being in the right place at the right time. With so many investors looking, you need plenty of free time to carry out your searches and to build contacts, ensuring you are first in the queue when a deal presents itself.
The appeal of this investment has not gone unnoticed by foreign investors too. A hands-off solution allows the luxury of owning high yielding properties and generating an income despite not living in the same part of the world.
With ‘hands off’ investments, the hard work of finding a deal with a good ROI and Yield (with Due Diligence, planning and research) has already been carried out for you. This allows you to spend less time searching for your next deal and more time enjoying your new income. Another benefit, is that many of today’s ‘hands off’ opportunities also offer a rental guarantee and property management company (eliminating potential future problems with empty properties and problem tenants).
The Benefits Of Hands-Off Property Investments
Founded by a Liverpool solicitor and landlord, the company provides a comprehensive and reliable management service that prides itself on an inexpensive and no-hidden costs pricing structure.