Dear "Gentle" Reader:
Reflecting on my journey into property management, I am struck by how my initial lack of real estate knowledge was countered by my extensive network-building experiences. My time at university in Italy and the University of London, where I was an Erasmus pioneer at the Institute of Education, provided a solid foundation. These experiences enabled me to build a robust network, which led to a steady stream of inquiries from individuals seeking accommodation in town. These inquiries ranged from short-term to long-term stays, as well as from property owners looking to rent out their properties. Daily, I received messages through my university platform and a Facebook page I had created, which quickly became my primary communication channels.
Recognising the Business Potential
It didn't take long for my partner to see the business potential in this influx of inquiries.
We decided to dive into the property market, focusing on Houses in Multiple Occupation (HMOs).
Although I was initially unfamiliar with the intricacies of HMOs, I relied heavily on my partner's expertise.
Our first property deal was signed in the southeast of London.
We found the landlord through Gumtree, and despite the property being in disrepair due to previous tenants, we saw an opportunity.
The landlord was desperate to find someone willing to accept the flat's condition and take on the necessary repairs. In exchange for a significantly reduced rent, we took on a three-bedroom flat valued at £1,300 for just £900. This agreement gave us the leverage to invest in refurbishing the property.
Property Refurbishment and Market Strategy
We immediately set to work restoring the property to its former glory. We hired a professional handyman to handle the complete redecoration and refurnishing of the flat. Leveraging multiple platforms, including "Italians in London" and SpareRoom, we listed the rooms on the competitive market. Our efforts paid off; within a week of renovation, we had found all the tenants and generated a profit of £1,000.
Our service package included clean bedding and towels, Wi-Fi, a landline, a colour TV, and various other amenities. We formalised these arrangements through tenancy agreements, although at the time, we had no idea that this was merely the beginning of our serviced accommodation venture.
Building a Community
Those early days at Mondania, our first property, felt like we were building a family.
A year later, our portfolio had expanded to include five more properties. Our tenants not only became clients, but also an extended family, as demonstrated by their presence at our first son's christening ceremony.
Key Takeaways for Aspiring Property Managers
Networking is Crucial: Building a strong network can provide opportunities even when you lack industry-specific knowledge.
Identify Business Potential: Always be on the lookout for business opportunities, even in seemingly mundane situations.
Leverage Online Platforms: Utilise various online platforms to market your properties effectively.
Value-Added Services: Offering additional amenities can make your properties more attractive to potential tenants.
Build Relationships: Treat your tenants well, as they can become an integral part of your success story.
My journey into property management was unconventional, but it was also highly rewarding. By leveraging my network, recognising opportunities, and providing unique services, I was able to build a successful property management business.
Whether you're just starting out or looking to expand, these principles can guide you towards success in the property market.