Open Property Group
Analysing your property portfolio this autumn
29 September 2022 7529 Views
![Analysing your property portfolio this autumn](/upload/images/adv-2021/sponsored-content/Open%20Property%20Group/autumn%20analysis%20property_OPG.jpg)
The UK’s buy-to-let market has changed beyond recognition over the last few years and with a recession on the horizon, landlords are being urged to conduct a health check of their portfolios.
As well as new legislation and greater levels of compliance, the cost of managing and financing a rental property is on the rise, meaning the location and type of property that return the best yields has and will continue to alter.
To understand whether your investment plans need to change with the economic landscape, here’s how to analyse the performance of your property portfolio this autumn.
Evaluate profit margins
At the end of the financial year in April, how much profit after tax did your rental portfolio generate? Were your expenses and outgoings more costly than in previous years? If your income is shrinking or you’ve managed to just break even, it’s worth forecasting how the next financial year will pan out to see if your property will still be a viable investment, especially with rising interest rates and management costs. If you’ve made a loss, it may be time to re-evaluate your investment strategy or exit the market.
Examine borrowing
If any of your buy-to-let properties are mortgaged, now is a good time to identify any fixed rates that are due to expire, investigate new products that you may be able to swap to and debate whether to fix in again in a climate of rising rates. Be aware that you may find it more expensive to fund buy-to-lets in the future as we’re moving away from rock-bottom rates. Also weigh up any early exit fees against current deals available and speak to your mortgage advisor.
Study your yield
If your yield is diminishing due to high running costs or more expensive borrowing, the property may be failing to perform. Is there anything you can do to improve your yield, such as raising the rent or finding more competitive insurance products, or re-mortgaging? Could you move away from a professional property manager to self-management? Use our yield calculator to help plan for your buy-to-let’s future.
Study yields elsewhere
There’s no rule to say you have to keep hold of poorly performing property investments, especially if yields are better elsewhere. Selling one buy-to-let to purchase another is sensible, especially if you can cash in on rising values and buy more cheaply in another area. If you are yield chasing and need to sell property fast to fund a reinvestment, Open Property Group can offer you completion and cash in your bank account within seven working days.
Check what changes are ahead
Private landlords should be planning for forthcoming changes, including the Renters’ Reform Bill and increasingly stringent energy efficiency standards. It’s worth reading up regarding the incoming obligations to see whether your buy-to-lets measure up as they stand now, or whether they will need costly improvements to make the legally-required grade.
Assess your cash reserves
Have you got a good fighting fund to cover void periods, unplanned maintenance or increasing service charges? We understand the cost of living crisis will force some landlords to raid their reserves or change their plans but we can help. If you planned to extend your property’s lease but now can’t afford to, for example, Open Property Group will buy any property with a short lease. Likewise, if you can’t fund major works or eco improvements, we will happily buy problem properties too.
Open Property Group is here to support landlords who may find that after an autumn analysis, they need to let go of some properties.
Contact us if you need to sell a property portfolio or offload a single buy-to-let in order to fund your future plans.
Previous Articles
![Spring into action and sell your BTL portfolio fast](/upload/images/adv-2021/sponsored-content/Open%20Property%20Group/Spring%20property.jpg)
Spring into action and sell...
![Landlord maintenance costs continue to mount](/upload/images/Maintenance%20OPG(1).png)
Landlord maintenance costs continue to...
![Don’t be impacted by rising rent arrears](/upload/images/tenant%20arrears(1).png)
Don’t be impacted by rising...
![Wave goodbye to winter property woes](/upload/images/Landlord%20Today_OPG(1).jpg)
Wave goodbye to winter property...