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The Mind-set Skills Required to Manage a HMO

Gavin Barry comments on the pros and cons of owning and managing large HMO property

Property investing is hard in any market but particularly challenging in the current environment. After all it's a business. Full-time property investing is a business and should be treated as such. There are numerous variables which can contribute to why a property investor fails or quits but in my opinion the one reason why most investors fail to achieve what they want or quit when the odds are stacked against them is their mind-set, or rather a lack of the correct mind-set.

Let's face it we all want property. We all aspire to owning our own portfolio, generating our own passive income, leaving a legacy, replacing an income, supplementing a pension etc., but I believe too many people fail as they don't appreciate how hard the road ahead can be when starting out.  

As a result of a property boom for many years and television programmes like Homes Under the Hammer and Property Ladder where inexperienced 'developers' were seen making money from renovating and renting their properties, I believe there is a perception that property investing is easy and as such people start investing without a clear strategy or any idea of where they will end up or more importantly no idea of what's required to succeed. Anybody can make money from property in a rising market. A falling or stagnant market is very different and requires a clear strategy, hard work, perseverance and focus; a positive mind-set.

I have developed a large portfolio over the years with many HMOs, both student and LHA tenanted properties, single let houses and apartments, holiday lets, commercial units and land. I regularly refurbish and trade properties and source opportunities for other investors and the one thing I have learnt over the years is that no matter what your strategy is, no matter how experienced you are, no matter how big or small the deal is you will always come up against disappointment and frustration which can lead to disillusionment. The easy option when faced with such circumstances again and again is to quit, to get a job again or sell your assets and reinvest in another asset class, one which is perceived to be easier.

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