How do you buy multiple rental properties?
When it comes to buying a property that you can rent out, the choice that you can make is to buy one single property that you rent out to a tenant, or multiple properties that you can then rent out to multiple tenants.
Some people buy separate places to rent out, whereas others may want to consider multi-family property investing (which is when a property is bought that can then house multiple people, such as HMOs or student housing).
No matter what type of multiple rental properties you decide to rent out to your tenants, you may be wondering how best to approach not only buying the properties but then renting them out too.
Always think of it as a business
One of the main things that you should do when it comes to buying rental properties, especially multiple properties, is that you are essentially running a business. Thinking of it as your business is going to help you to stay committed to it and will also help you to limit the number of emotions you link to the properties that you own.
Not only this, but you also will think of it as an investment, that you want a return on. You will be more likely to make carefully considered decisions and to take the time to do your sums, which will help you in the future.
Decide on the area
Renting out one property with multiple tenants means that it is going to be much easier (at least geographically) to rent out and manage the tenancies. If you decide that you want to invest in multiple, separate properties, then you will need to carefully think about the area.
Whilst they are separate, you can still decide to buy in more particular area, say a town or a borough of a city, which will mean that when you are making visits and inspections, it will be much easier for you.
Decide whether you want the help of an agent
Many landlords decide to go it alone when it comes to renting out a property, whilst others will rely on the help of an agent to help with the management of their tenants. Both of these approaches have their pros and cons and you will need to carefully consider them before you decide which is going to be right for you.
Some people find the help that a property management company can give them, invaluable. However, this will come at a cost, that you will need to factor in when it comes to your profits.
Understand the work it takes
Maximizing your property investment with effective property management
One of the common mistakes that landlords make, especially those with multiple properties is that it can take a lot of work and time. Rather than being an easy way to make money, when you have rental properties, you need to work at it and keep working at it.
Sure, there are going to be quieter times when things are going to seem much easier, but you should always be prepared for something to crop up that is going to need your attention.
Owning one rental property is great, but, if you want to maximise your investment and try to make as much money as possible, then you are going to want to consider multiple properties that you can rent out.
This may be something that you dive straight into, or, if you want to take your time, then this could be something that you think about over a much longer term, building up your portfolio, your business and in time, your profits too.