Tips to Protect Your Property Portfolio from Rising Inflation

1. Tips to Protect Your Property Portfolio from Rising Inflation

2. INTRODUCTION Property assets appreciate gradually over time and are considered a fairly inflation-proof investment since, although the economy may be sluggish, it is very unusual for bricks and mortar to drop in value. Here we’ll run through some suggestions to help you maintain profitability, along with guidance about assessing the fair rental value of each rental property in your portfolio.

3. Location WHY DOES INFLATION IMPACT RENTAL PROPERTY PROFITABILITY? Price Property size and condition

4. Inflation itself doesn’t normally have any marked impact on the valuation of a property, but it can affect other outgoings. Managing those costs during times of swift price rises can be essential to ensure your portfolio achieves the returns you expect to make on your investments. Purchasing a residence with a suitable rental value should cover the running costs, with a profit element. This ‘dual’ return is one of the key reasons properties is such a valued asset, whether to retain towards retirement as a low-risk investment or benefit from long-term market growth.

5. CONTROLLING RENTAL PROPERTY COSTS DURING RISING PRICES

6. For most landlords, the mortgage is the highest expense linked to a rental property in Chichester. rental mortgages can be flexible, and professional property investors may have several options to consolidate, extend or reduce their payment obligations through: • Extending the mortgage term to reduce monthly repayment costs. • Switching from repayment to interest-only. • Consolidating mortgage borrowing.

7. MEETING MARKET DEMAND TO IMPROVE PROPERTY PORTFOLIO RETURNS

8. The income your portfolio provides and assessing how the costs of running and owning a property have changed. It is recommended to compile detailed budgets to have comprehensive oversight of their margins, looking at: • Maintenance and repair costs. • Council tax and utilities. • Borrowing interest and product fees. • Gas and electricity safety inspections. • Landlord licences for HMOs. • Insurance coverage.

9. MODIFYING PORTFOLIO PROPERTIES TO BOOST INCOME REVENUES

10. There may be opportunities to increase demand, interest and the rental market value of a portfolio property. Options may include, but are not limited to: • Permitting tenants to take up residence with a pet, incorporating the safeguards around damage and maintenance within your tenancy agreement documentation. • Making improvements to the condition, décor, exterior or space inside the property • Investing in the energy efficiency of a portfolio asset

11. ENDNOTE The right solutions will vary and should be tailored to your portfolio, the location of your property assets, and any shortfalls in your rental yields you wish to address. For more advice about managing your property portfolio in and around West Sussex, please contact the local Tod Anstee Chichester office to arrange a convenient time to talk.

12. 124-352-3723 https://www.todanstee.com chichester@todanstee.com Contact details Thank Mobile phone Online form Email address FOR BOOKINGS AND VIEWINGS Information Source:-: https://www.todanstee.com/latest-news/how-to-protect-your-property-portfolio-from-rising-inflation/ you! Real Estate Chichester | March 2024