When does a portfolio become a business?
In the UK, surveys continue to suggest that the British buy-to-let market shows no signs of slowing down. In no uncertain terms, the UK’s private rental sector is thriving. As first time buyers continue to find themselves frozen out of the market, 56% of landlords attributed their decision to consciously acquire investment property to the sheer demand in their area.
In fact, according to Simple Landlords Insurance, over three-quarters of those surveyed actually said they were confident that they could find new tenants within four weeks of their properties being unoccupied.
In addition, recent research at property development company Countryside suggests that over half of UK landlords are optimistic about rental growth in the coming year, with average rents currently sitting at £861 monthly, nationwide.
So, with all this investment and growth, for landlords, it prompts the question when is a good time to start taking things more seriously and make a real business out of a portfolio?
Opportunities in the Lettings market are growing
In a poll of 1,400 landlords, 48% said they own three or more properties and over a tenth claimed to have five or more. Furthermore, almost precisely two-thirds of landlords nationally are actively seeking to grow their portfolios.
Landlords used to managing properties on an individual basis, or at least on a smaller scale, appear to be of declining proportions. Often, a substantial portfolio of promise can become a juggling act.
Professionals in the industry suggest that a portfolio becomes a business when the idea of single-handedly managing an array of properties with the detail and care required, becomes nothing more than an ideal. However, in essence, it should not be an ideal.
Managing property in this way should be straight-forward, it should be realistic and, ultimately, it should be MANAGEABLE.
This is where, for those with the vision and ambition required for growth, the concept and reality of a Property Franchise enters the frame. A franchise allows a landlord to become an agent with a fully-fledged business. It necessitates the use of premises and the development of marketing, providing a solid foundation for the advancement of the franchisee and subsequently encourages potential.
A franchise makes the process easier for the franchisee, providing proven operational methods, a body of support and extensive training resulting in a high probability of success.
A franchise provides a reputable name and frame of reference and ultimately an opportunity for those ready to take the next step.
From experience we have found those landlords who enter as a franchise have a much higher success rate than those who attempt to go it alone. In a competitive marketplace it’s much more difficult to gain traction and establish a new brand presence from scratch, than when branding, training and support are all provided.
If you’re interested in exploring the Franchise opportunity offered by Go Direct, why not start by downloading our free prospectus
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