Tips for Rental Property Investors
Property investing can be a risky business. Follow our tips to maintain a long-term reliable rental income from your investment property.
Purchase Quality Fixtures & Fittings
Under-budgeting, and purchasing low quality appliances is a mistake many property owners make. Low quality fixtures, fittings and appliances often require regular maintenance more frequently, and need to be replaced after a much shorter period. This causes the cost to be more expensive than if a quality item was purchased in the first place.
Maintaining a professional relationship with your tenants is a great way to encourage them to stay longer and take good care of your property, helping maintain a reliable rental income. Good communication and goodwill goes a long way in maintaining good landlord-tenant relationships. Tenants generally expect enquiries and requests to be answered in a timely manner, and appreciate you being friendly and co-operative – remember goodwill reflects goodwill.
Does the roof need to be repaired? Are the windows leaking? Is the property secure? Look out for any preventative repairs required during property inspections to reduce the occurrence of damage over time.
Investing Badly During Renovations
When landlords decide to invest in a rental property it’s often with the goal to increase its rent income and tenant demand. Yet all too often people fail to invest in quality products that will earn profits in the long-term. Though it’s tempting, try to avoid cheap, low quality paint, wallpaper, carpets and tiles. These have a habit of wearing out quickly. Discerning tenants look for better quality and you may be cutting some of the best tenants out of your market.
Don’t make the mistake of sealing the deal and purchasing investment properties without fully understanding the financial situation. Take the time to first consider what the cash flow will be, how the property will help your financial position, and what initial maintenance may need to be done to attract good tenants. Analyse the gross yield and net yield of the property, then calculate what you will earn after all the costs are taken into account. You may even find the property isn’t as profitable as you first assumed.
Managing the Property
Managing properties is more than just being available to answer tenant calls all day every day. Make sure you keep on top of the paperwork too. Often we hear about landlords who let rent arrears get out of control with thousands owned. A simple spreadsheet and swift contact with the tenant can help you keep on top of rent arrears, maintenance costs, endings of tenancies, help you measure the financial success of the property, and remind you when the rent value can next be looked at. Thus creating a less stressful investment and a more confident investor. Another common mistake made by self-managing landlords is the avoidance of properly checking and recording the condition of a property, at the beginning and end of each tenancy, and at regular property inspections, then letting damage go by without claiming the repair cost from the tenant.
Find Out More
To find out more about property management get in touch with Quinovic Parnell – experts in property care and return. Click on the link below: