Buying a Property Portfolio: What to Know Before You Commit

Buying one property’s a big decision — buying several at once is something else entirely. Whether you’re taking over a small group of buy-to-lets or buying a larger portfolio from another landlord, it’s not the sort of deal you rush into.

There’s more paperwork, more risk, more money on the line — but if it’s handled right, it can give you a head start most investors take years to reach.

What Is a Property Portfolio Purchase?

In short, it’s when you buy multiple properties in one go, usually from the same owner. Could be anything from two or three terraced houses to dozens of flats or a full block. The properties are often already let, with tenants in place and rental income coming in.

Sometimes it’s someone retiring from the landlord game, other times it’s a company restructuring or selling off part of its assets. Either way, the key attraction for buyers is scale — you grow your property footprint overnight, not over years.

It’s Not Just a Bigger Purchase — It’s a Different One

Buying a portfolio isn’t just buying “a few houses”. It’s a different type of deal. Each property has its own issues — legal, financial, structural — and you need to look at every one individually, not just the bundle as a whole.

There are also tax implications. If the purchase counts as a business transfer, or if the properties are held in a limited company, the setup might be completely different from buying through your own name.

Stamp Duty can also add up fast. On bulk purchases, the reliefs available under multiple dwellings relief (MDR) can help, but it’s not automatic and it needs to be assessed properly.

You’ll want a solicitor and an accountant who’ve done this kind of work before — and ideally, a broker who understands buy-to-let portfolios. Trying to piece it together yourself is a fast way to miss things.

What to Check Before You Go Ahead

It might sound obvious, but just because the properties are already rented doesn’t mean they’re profitable. You need to look at rent levels, void periods, arrears, repairs, and whether the tenants are likely to stick around.

Are the rents under market value? Will you need to spend money bringing properties up to standard? Are there any disputes, court actions or licence issues with the council?

You’d be surprised how often portfolios look good on paper but don’t actually bring in much. Just because a house has tenants doesn’t mean the rent’s any good, or that they’re even paying. First thing to check is: what’s coming in, and what’s going out. That means proper rent statements, maintenance costs, gaps between tenants — the lot.

Don’t assume rents are at market level either. A lot of landlords keep old tenants on low rents to avoid hassle, but that also means less income for you unless you plan on raising them, which has its own issues.

Then there’s the properties themselves. Are they in decent shape? Do they need rewiring, damp work, new boilers? You might be looking at thousands per house just to get them up to scratch. If you’ve got five or six of them, that adds up quick. It’s easy to miss until you own the lot.

Also worth asking: are there any local council rules you don’t know about? Some areas need landlord licences, or have extra rules for HMOs. You don’t want to find that out after you’ve signed everything.

On finance — unless you’ve got serious cash, you’ll need to borrow. Portfolio mortgages are a thing, but not every lender offers them, and they usually want more info than you’re used to. Some want to see tenancy agreements, full breakdowns of income, maybe even your own property experience before they say yes.

And if the seller already has mortgages on the properties, you’ll need to know what happens with those. Some deals involve refinancing, others are sold through limited companies where you’re buying the company, not the properties. That’s a whole different setup. You’ve got to be careful — sometimes you inherit the good, the bad and the unknown.

Last thing — don’t just look at the price. Ask yourself if it’s worth the hassle. Managing five or ten properties isn’t the same as owning one or two. Repairs, rent chasing, dealing with tenants — it’s a bigger job. If you’re not set up for that, it can get messy fast. Contact SPV mortgage portfolio purchase for more information.