Following 28 years developing my career in the corporate Oil & Gas sector, in April 2018, I decided to join a training programme for Property Investors. Since then, I am proud to have built a strong portfolio of successful buy-to-let properties.
I typically buy a property that requires some upgrading work. From installing new kitchens and bathrooms to decorating and landscaping. I thoroughly enjoy taking something that is in need of some TLC and turning it into a welcoming family home. Over the years, I have delivered some challenging renovations and learned plenty of lessons along the way!
What I began to realise as I started on my own property journey was how useful my previous experience, in finance and planning within the Oil & Gas industry, was to my new venture. It does not matter which sector you operate a business in, the same basic principles apply when managing the performance of the business.
The lifecycle of an Oil & Gas field has five phases:
- Exploration
- Appraisal
- Development
- Production
- Decommissioning
The lifecycle of a buy-to-let property has some remarkable similarities:
- Selecting potential properties to buy
- Evaluating and formulating your purchase offer
- Renovation
- Letting
- Selling on
Whether you are involved in all these phases or a subset of them, it is vital to monitor progress and performance at every stage. This is how you will effectively hold yourself and others accountable as well as identify opportunities to improve performance.
I know from my own experience that what you carry in your head is not always the same as the actual data. Seeing the facts and figures on paper or screen can really help. Initially, I felt I was viewing too many properties because it was taking up lots of my time. However, when I began tracking how many I was viewing, I realised it wasn’t enough if I was going to build up a solid portfolio at the pace I wanted.
By closely reviewing and tracking my activities, I knew how to make better use of my time and that was to outsource this phase. Another good example of this is estimating versus reality. You may estimate that repairs and maintenance will be 10% of your rental income but if you don’t reflect back to validate this figure it could have a negative impact on how you evaluate your next purchase offer.
There are many more questions you can ask yourself about your portfolio. But the key success factor will be how well you measure and track each phase of the project to ensure the data really supports your decision making.
If you want to learn more about what you can do to understand the performance of your property portfolio, then please get in touch.
