Should I managed my first investment property?
A first investment property can be a daunting venture for many investors.
Many people want to become a landlord so they can have a successful and income producing asset however, sometimes the responsibilities of being a landlord can be overlooked.
In the UK, landlords have a long list of duties and laws which they must abide by, many of which can go unnoticed by novices who go at it alone.
What’s more, different types of property have different requirements. For examples, the regulations which must be met for student accommodation are different to those which would need to be met by a traditional buy-to-let or a commercial property.
Self-managed properties can be a very profitable however, for those landlords who wish to have a hands-off approach to property investment may wish to look at fully managed options instead.
A new infographic which has been released by Experience Invest has outlined the pros and cons of self-managed and fully managed property investments.
Specifically focusing on the UK’s student accommodation investment market, the infographic highlights some key points which can sometimes be ignored by landlords.
Although the data is tailored towards the student market, many of the points on the checklist are also applicable to other asset classes such as residential buy-to-lets.
From the information outlined in the infographic, it would seem that fully managed property investments are, by nature, a better choice for investors who wish to generate a passive investment. This could be a better option for those who require help with their first investment property.
However, investors should be aware that appointing a management company can be a costly decision and that their fee will eat into profits.
Investors should also ensure that if they do wish to appoint a third party to manage their first investment property – whether it is student property or another type of asset class – they should only use a reputable company with an established track record.