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Welcome to the final instalment of our week of themed content, here on Property Tribes, where we have been looking at different business risks in the property sector and how landlords can mitigate them.This is all part of our year long "Smart Landlord" campaign, celebrating the 10th anniversary of Property Tribes and, hopefully, over the past decade, Property Tribes content has assisted landlords in avoiding the pitfalls by making someone else's hindsight their foresight and sharing tips on how to reduce risk.This graphic illustrates the process of risk mitigation in business:For this week, we identified three main types of risk:1. Risk of financial lossThis could be through a tenant not paying the rent, buying a bad property deal, suffering void periods, interest rate rises, making poor business decisions, having a tenant on Universal Credit without having direct payment to landlord, a "black swan" event such as a major local employer shutting down.2. Regulatory riskThis covers everything from Government intervention, increasing legislation, and fines for non-compliance - which can be up to £30K. There are now over 180 Government statutes and regulations that landlords have to adhere to in order to provide a compliant and safe home for tenants.3. Rogue riskEncountering a rogue tenant, lettings agent, property trainer/guru, builder, or some other person or business you transact commercially with.Ultimately, all of these will result in financial loss, not to mention stress and emotional heartache, so smart landlords look to mitigate their risk at every opportunity. They know that prevention is ALWAYS less expensive than cure!In this final instalment, we hear from Sean Hooker of the Property Redress Scheme with a helicopter view of business risk, how risk management is a vital landlord activity, and how one incident could wipe out years of profit:
As well as being in "prevention" mode through the due diligence, as mentioned in the interview, smart landlords can insure against virtually every risk in property, and the Alan Boswell Group award-winning team are at PT members service to ensure they get the right level of cover. Call the ABG team on 01603 649736 .Another additional way to mitigate risk is to join a Landlord Association and take advantage of all their support services and training. Property Tribes is partnered with the Residential Landlords Association and PT members can enjoy 25% discount off joining.To see some of the stories of people who did not undertake sufficient due diligence, visit our "Landlords in Distress" and "Problem Tenants" tribes. Hopefully this week of themed content has gone some way to ensure that you never have to post in those categories!Catch up:Monday - the launch of week and looking at how landlords can insure against risk - with Alan Boswell Group.Tuesday - the importance of inventories with the Association of Independent Inventory Clerks and Inventory Base.Wednesday - mitigating risk through the use of a reputable lettings agent with David Cox, CEO of ARLA.Thursday - Mitigating business risk via due diligenceThank you to all our contributors for sharing their insights and also thanks to everyone who engaged with the content over the past week, we hope you have got value from it.SEE ALSO - How to vet a lettings agent ... 12 questions to askUP NEXT - 15 questions every landlord should ask prospective tenantsDON'T MISS - How to use Companies House for due diligenceNOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Great article. Thank you for sharing.