The Most Cost Effective Ways of Managing a Property Portfolio

Property investment can be a very lucrative opportunity, but it’s also one of the highest risk and potentially expensive ventures you can embark on.

Managing a property portfolio can be costly, time consuming and you’ll face many challenges along the way. However, there are ways you can minimise the costs involved and below you’ll discover just some of them.

Structuring your investments to take advantage of tax breaks

The government may be taking a larger tax cut from private landlords, but did you know there’s still ways you can benefit from numerous tax breaks?

If you own the properties jointly with your spouse for example, you could save in capital gains tax. This is because it allows you to double the CGT allowance, meaning if you both pay a high rate tax, you could save as much as £3,000 when selling a property.

You could also buy a property using a limited company structure. This would allow you to bring in some of your income in the form of dividends and could work out more tax efficient than having the property in your own name.

Saving when buying or selling a property

The biggest expense that comes from managing a property portfolio, is when you want to buy or sell a property. The fees can be significantly high and it’s easy to get ripped off. Therefore, one way to make it more cost effective is to choose a reliable, affordable agency such as GVA Grimley Limited.

Choosing a company renowned for its competitive fees and unique investment opportunities could save, as well as make you, a small fortune.

Get on top of repairs quickly

One of the biggest mistakes you can make when you have a healthy property portfolio, is slacking on maintenance and repairs. The trouble is, minor repairs can quickly turn into major problems if left unfixed.

Many landlords are tempted to fix any issues either themselves or save money by hiring a friend to do the work for them. However, this can actually end up costing a lot more if the work carried out isn’t to a high standard.

Carrying out regular maintenance and fixing any potential issues quickly is going to save you a lot of money in the long-term.

Overall, managing a property portfolio can be costly, but with the advice above it is possible to make cut backs. There are a lot of cost-saving tricks you can use to make sure your portfolio delivers maximum returns so it’s worth doing a little research to see where else you can cut back.