Landlords Should Factor their Time as a Cost in any Property Investment Decision

High yields often bring high maintenance for landlords.

The High Rental Yield Property

A HMO might bring a good rental return but if often brings, higher wear and tear levels and consequently more maintenance.

It brings endless re-lets of individual rooms to tenants, which potentially brings lots of meetings and viewings for landlords. All this adds up in terms of property management hours.

The Low Rental Yield Property

A family home can often bring more careful tenants who are looking to settle and make a home. They may look to improve and maintain the property to a high standard, repair any damage and look to stay for 5 - 10 years.

This brings low maintenance and management, saving time for a landlord.

How to Calculate the Options

It's worth landlords looking to evaluate the value of their time before deciding on a property investment strategy.

For example if a landlord is a solicitor or high paid company Director they may calculate their hourly rate is worth £50 - £100, if this is the case the low maintenance property investment might turn out to be a more profitable option.

Landlords who self manage should look to factor in an hourly rate for their time before they decide on which investment route to take.

Remember 'Time is Money'.

Hawkeye