We’re on a mission to simplify property investment, which is why we try to offer a hassle-free investment journey.
We want to ensure that our members remain at the forefront of our growth, which is why we wanted to share our newly implemented, investor-focused strategy, designed to improve tenancy rates and property management.
In October 2016, our property experts designed and implemented an investor-centric strategy aimed at reducing void periods across our portfolio. We’re thrilled to announce that in the past three months, we have reduced the number of untenanted properties from 18 to 8. Now, over 91% of our portfolio is tenanted. We believe this is an incredible step forward and proves the successfulness of our newly implemented strategy.
Our Investor-Centric Strategy
Our investment strategy has been structured around four main categories:
- Knowing a Tenant’s Commitment
We decided to analyze why our tenancy sourcing wasn’t as efficient as we wanted it to be. Circumstances meant that we would only learn about a tenant’s plan to leave after we had secured the property.
Under our new strategy, all tenants, including those residing properties advertised as tenanted, are treated as newcomers. This involves conducting references, viewing payment histories and learning about their long-term plans. We believe this simple step has and will continue to increase an investment’s potential to provide regular returns. Although this may sometimes slow down the sourcing process, we believe it is a necessary step to ensuring tenants are committed to our listed properties.
- Bringing the Property Management In-House
Whilst managing properties through local agents can offer an incredible amount of expertise, bringing the property management more in-house provides us with a higher level of control. We have implemented a software system called PropCo, which automates part of the management process and streamlines the procedure. The structure of the system is task-driven, which allows us to efficiently organize our efforts into repeatable processes for increased scalability.
We are in contact with tenants on a much more regular basis than the external agencies we worked with in the past, and we’ve already received positive feedback which has confirmed this. By taking control of these relationships, we are not only helping to ensure that tenants are happier and are therefore staying longer, but we’re also helping to prevent small maintenance issues from developing into larger costs. This open conversation allows us to stay on top of repairs as they unfold, hopefully reducing the risk for returns to be compromised.
- Using Prequalified Maintenance Teams
When using external agencies, the majority of property maintenance was beyond our control. Now, we have more control over the process. Firstly, we can ensure that we are paying the best price for the works by conducting our own due diligence and drawing upon our own expertise. Secondly, through recommendations and previous delivery, we have prequalified all of our maintenance teams and can now maintain a strong network of support across the UK.
- Implementing Low-Cost Insurances
We have implemented low-cost insurances across our entire portfolio. For example, we now have an insurance on each property which costs approximately £13 per month, which provides a breakdown cover for boilers, leak drainage, electrical issues and a variety of other potential repairs. Prior to this insurance coverage, a call-out fee alone would cost more than the insurance cover’s annual subscription. We believe this is a fantastic step in the right direction to improving the investment process for our investors.
Summary
By putting our investors at the forefront of these changes, we believe we’re continuing to create a platform that provides a space for change, driven by the needs’ of the Crowd.
Disclaimer and Legals
Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest. This post has been approved as a financial promotion by Resolution Compliance Limited.
Property Moose is a trading name of Crowd Fin Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no: 574048).
The post Improving Tenancy Rates and Property Management: Our Investor-Focused Strategy appeared first on Economoose.
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