Turn Your Passion for Property Into A Thriving Business
Are you passionate about property? Maybe you’re the first to be round a friend’s house when they’ve just moved into a new place, or perhaps you’ll never miss your favorite property shows on television. The idea of renovating old and unloved properties and transforming them into people’s dream homes is always appealing- and it makes for a fantastic business as there’s lots of profit to be made.
You could purchase a property cheaply at auction, do it up and then use the profits towards new places. Or if you don’t have the cash to purchase up front, you could take out a number of buy to let mortgages and rent them out, where over time your tenants essentially pay for the house with their rent money! Either way, if you’re hoping to turn this into a thriving business then here are a few things to bean in mind.
Choose The Right Properties
If you’re going to be renting your properties out, you might choose to purchase places that are local to where you live- especially if you’re going to be managing them yourself. That way you cut down on travel time when it comes to things like meeting tenants, sorting out tenancies and rent and much more. Even if you’re hiring an agency to deal with these things for you, it can be more convenient if you’re local and able to get to the properties or the office in person if you need to.
Set A Realistic Budget
Whether you’re going to be selling or renting out houses, it’s very important that you know exactly what you need to spend on them to maximize your profits. Some places can have ‘ceiling prices’ meaning regardless of how much you spend on them, they will only ever sell for a certain amount. You need to know what changes to make and what to leave, where to spend and where to save to transform the property into something that people will pay the maximum asking price or rental amount on. In some cases, you could get a bit of money back when you’re renovating a house, if you’re pulling out things like old radiators, fixtures, wiring and more, you can usually cash in since scrap metal prices are high. In other cases, past tenants or owners could have left anything from antiques to furniture in the home that you can sell on.
Build a Team of Reliable Tradespeople
When you’re renovating a property, there’s plenty you can get on with yourself. Filling skips, taking off doors, gardening, decorating and much more. But there are always going to be jobs that absolutely have to be left to the professionals- electricians, plumbers, kitchen fitters, gas engineers and more. To create a thriving business in property, you need access to these kinds of tradespeople who you know will do a good job and charge you a reasonable price so you can make a profit on the property overall.
Whether you choose to buy and sell, rent them out of a mixture, property can be an exciting and lucrative business.