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Insight & Opinion

Fully-managed properties: The key to a stress-free investment

Author: Gemma

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Buy-to-let is one of the most popular types of investment around in the UK at the moment, thanks to the high demand from tenants and the great yields this can bring about for owners.

In fact, a recent study showed that investors are now welcoming the highest rental prices on record, averaging some £761 per month. This has allowed owners to see an average return of 12.7 per cent in the last year alone, showing just how strong the sector can be.

However, despite all of the positives, a new survey has suggested that being a landlord can come with some significant downsides as well. Chief among these is the stress that it brings with it.

UK Landlord Tax’s study showed that some 25 per cent of people who had become a landlord found it more stressful than they had thought it would be, while 67 per cent said they now feel more stressed than they did just a year ago.

Most of the stress is derived by the time that landlords need to spend dealing with tenants and letting agents, ironing out issues that can crop up. Some 53 per cent said they will typically use at least 20 per cent of their annual leave from work dealing with their investment. Additionally, 46 per cent of landlords will spend 20 hours per year on the phone negotiating with tenants, sorting out insurance and dealing with repairs and maintenance.

Late rent payments are a worry for 58 per cent, while funding property maintenance and having homes lying empty and making no money are also major concerns for landlords.

Simon Thandi, director at UK Landlord Tax, said that part of the issue is that there has been a swell of new investment in this sector over the past few years since the rental market saw a real upturn.

“Following the dramatic increase in landlords in the UK it’s not surprising that they are becoming more stressed. Letting properties is a serious business and with the number of so-called ‘accidental landlords’ increasing significantly it’s no surprise that landlords are feeling the pressure,” he said.

However, there are ways to invest that can help to alleviate this stress and give owners the sort of passive investment that brings strong guaranteed returns without the need to have a hands-on approach.

Putting money into fully-managed properties with Experience Invest allows buyers the chance to buy off-plan for lower entry prices, and get their hands on fully-furnished and managed homes that require them to do very little. Typically these investments will come with a period of guaranteed return at the start of the purchase, and best of all is it comes without the stress of doing it alone.

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