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If you are a buy to let landlord who bought at the top of the market, now might be the time to reassess how you manage your investment.

When times were good there were a glut of mortgages on the market for those who wanted to dip their toe into property investment. Many invested very little after hearing promises of instant gain and massive profit over the short to medium term. But now house prices have fallen dramatically, those who were already highly geared with a high LTV mortgage might have to really think hard about their investment.

Kesh Thukaram, managing director of Smartlandlord.co.uk says: "Anyone who entered the private rented sector in the last couple of years is having a particularly hard time. Speculative landlords buying at the top of the market have a relatively high loan to value and falls like these have had a massive impact on their return on investment.

"Those landlords need to take extraordinary steps in these extraordinary times to safeguard their investments and cut costs even further if they're to survive – managing properties themselves rather than through a letting agent, and using online tenant find products at a fraction of the price of an agent."

Talk to a mortgage adviser and ask them how to best manage your investment. It might mean saving money, it might mean remortgaging your residential home, it might even mean trying to sell some of your investments. Extraordinary steps might be tough to take, but landlords must do all they can to survive.

Of course, it's not a terrible time for all landlords. Those who have managed their asset well may be able to look to increase their portfolio and cement their hold on the rental sector.

Thukaram says: "This is a perfect opportunity for them to invest in further properties while they offer the best value for money. They can secure good yields for the future while expanding their portfolios."

SOURCE: Smartlandlord.co.uk, 08/07/09

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