Part 3: ECONOMIES OF SCALE
In the early stages of building a multi-let portfolio our clients are often engrossed in landlord mode; the excitement of the deal, the enthusiasm for something new and rolling the sleeves up and getting really stuck in.
However this excitement and novelty wears off and is instead replaced with the realities and challenges of running what is a reasonably complex portfolio model with lots of moving parts which can become very challenging very quickly.
HMO and multi-let portfolios, especially in today’s market of increasing competition and compliance, require a sizeable amount of expertise, systems, knowledge and man power just to operate at an effective base level.
On the way in, think strategically about the size of which you are to grow this portfolio in order to achieve the required balance between financial return and the freedom of time.
In the early days, it will be one person doing everything as immediately as possible. If you are really going to profit from multi-lets, you require the expertise and focus of a team where everyone is doing one thing.
Economies of scale allow your business model to go an inch wide and a mile deep in every function from applications to admin, contracts to credit control and maintenance to marketing.
We’ve invested five years and over £500,000 to build a dedicated team of 30+ full time professionals who provide the dedicated drive, focus and expertise required to master the Multi-Let management model at the most effective level around the UK.
Are you better to replicate this model for your portfolio or leverage this business to provide the framework you need?
If you currently have 50+ HMO/Multi-Let rooms in your area and would like to discuss the opportunity of working with Multi-Let in 2017 and beyond please find out more or register your interest or join us on one of our upcoming Multi-Let UK webinars.