Portfolio Optimisation
The Case Study
OUR APPROACH
Step 1 Collect Comprehensive Data
Step 2 Identify Strengths and Weaknesses
Step 3 Develop a Strategic Action Plan
Step 4 Obtain Client Approval
Step 5
Execute the Optimisation Strategy
about this project
Our client approached us with concerns about their portfolio's performance, specifically highlighting issues with void periods and low gross yields. Through our comprehensive approach and strategic solutions, we were able to address these challenges and revitalise the portfolio to achieve improved results.
Before Tribe
The property investor approached us, seeking assistance to optimise their underperforming portfolio. The portfolio consisted of 11 properties, which were experiencing low gross yields and void periods. The investor was also incurring substantial annual agent costs, amounting to £45,748.
Work Conducted
Our team at Tribe Portfolio Management conducted a thorough analysis of the investor's portfolio, identifying opportunities for improvement.
We discovered that 54% of the properties were signing new leases, which allowed for higher rental increases, while the remaining properties could only be raised by 3% in line with local legislation. This resulted in an additional £21,175 per year.
Additionally, we assessed the property management charges and recommended a more suitable option, reducing the annual agent costs from £45,748 to £27,433, resulting in direct savings of £18,315 per year.
Tribe Impact
As a result of our optimisation efforts, the client saw their annual gross income increase by £21,175 and reduced their annual agent costs by £18,315, resulting in a total annual benefit of £39,490.
Our services cost the investor a mere £223 per month (£2,676 per year), demonstrating the exceptional value we provide in enhancing our clients' financial performance, as the total annual benefit far outweighs our service cost. We are excited to continue supporting this client in their future endeavours.
The Financial Impact
-£2,676
annual tribe fee
£21,175
rental income increase
£18,315
management cost reduction
£36,814
direct financial gain
