Great property investors are good at relationship management
One mistake that I see property investors making all the time is thinking that property investment is simply a numbers game. While it’s true that making the numbers add up is important, and using strategies to reduce the effects of UK tax changes on your investment will help cash flow, property investment is, at its heart, a people business. It’s about emotions, trust, confidence, and relationships. The best property investors are experts at investing in people management.
Four key people relationships for property investors
From the beginning of the process through to when all mortgages are paid up, and you discover that buy-to-let property investment will double your income in retirement, property investors will invest time and effort in people. You’ll form relationships with certain people or groups of people, which I place into four categories:
1. Property investment team
You’ll want to know that your property investment team is accessible and that it works for you. It pays dividends to work with a company that provides a dedicated point of contact, with the experience and knowledge to ensure all your queries and concerns are dealt with in a timely and professional manner. You’ll also want to benefit from top quality property research, investment education resources, and access to client testimonials.
Remember that just as property investment is a long-term strategy, your relationship with your property investment team will need to be equally long term.
Having nightmare tenants can ruin the profitability of a buy-to-let property investment. It’s essential that you vet tenants properly, and when you find a good tenant make sure that you have a strong written tenancy agreement. The best buy-to-let landlords I know are those who know their tenants or have property management teams that know the tenants. Being approachable to tenants is important to build trust and keep a good tenant in a property for a long time.
3. Property management team
I take the stress out of managing my properties by employing people to manage my properties for me. If you employ a great property management team with local knowledge and local contacts, you won’t have to build a network of tradesmen. You’ll be able to go on holiday or take a short break safe in the knowledge that you can relax while your property has a great tenant and a property team looking after it.
4. Lawyers, accountants, brokers, and other professionals
As your property investment portfolio grows, you’ll find that you rely more heavily on professionals like lawyers and accountants. By forming a good relationship with these, they will get to know what makes you tick and what is important to you. If there are changes in the law or tax regime that will make a difference to you, they’ll probably make sure you are first to know.
Here at YPC Group we take pride in the way we work and the relationships we build with clients. Just like you, we’re in this for the long haul. Many of our longest serving clients first approached us because they were convinced about property investment, but weren’t being shown the best off-plan property investment opportunities early in the process, before prices had increased.