Importance of professional support for Investors

Published on 24 April 2015

Research reveals importance of professional support for buy to let investors: why effective monitoring is vital for a successful investment

Research reveals importance of professional support for buy to let investors

New research has revealed that returns of nearly 25-per-cent of buy to let properties are not tracked by their owners. The survey found that this totalled £300 billion of unmonitored investment in the UK residential property market alone. Holiday rental portfolios were found to be the most likely to go unassessed, with 33-per-cent of holiday rental landlords “failing to measure the financial performance of their rental properties”.

Buy to let investment terms and definitions

Return on investment, or ROI, is considered the most effective way to measure performance as, particularly in the case of buy to let properties, it is the only way to take into account all costs and fees. The survey found that there was considerable confusion amongst landlords regarding the assessment of their portfolio, with the term used to describe financial measurement widely misunderstood. Indeed, only 24-per-cent of those surveyed understood its meaning with 56-per-cent failing to do so entirely and 20-per-cent stating that they were unsure.

The value of using property investment companies

The data revealed that a further £500 billion of buy to let investment remains at risk of ineffective monitoring, to a total of £700 billion. With calculations that often exclude management and maintenance, and do not take into account the cost of the property itself, “a staggering amount of capital investment is not being managed diligently.”

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