If you’ve had a windfall, chances are you might have decided to focus on investing in property. After all, property will always be in demand – and it’s always nice to be able to look at a building and to know that that’s where your money is. Stocks and shares can sometimes feel a little more up in the air and unreliable. But if you’ve decided to invest in property and rent it out, there are a few things that you should be aware of…
Be Aware Of Your Market
First of all, you need to be aware of your market. Before you invest in a property, make sure that you know exactly who it is that you want to rent it out to. If you’re interested in renting to young professionals, then you need to make sure that the property isn’t out in the countryside and that it’s near a commuter hub so that people can get to work easily. If you want to rent to people with young families, you need to make sure that you’re near a school, that you have a back yard that the kids can play in, and that local amenities like play centres and parks aren’t too far away. These are the things that people will be looking out for when they’re picking a property to rent, so you should too.
Be Financially Smart
Make sure that you’re financially focused at all times – after all, your main purpose here is to make money from your investment. Charge rent that’s in line with the normal local rate, and ensure that it more than covers your mortgage payments every month. Remember that you should keep a nest egg so that you can update anything that goes wrong and so that you can easily pay for installation of things like new boilers, new carpets and things like washing machines if the one that’s already there packs up. You should make sure that you pay your taxes on time and regularly – if necessary, hire a good accountant who can keep on top of this for you. You don’t want to end up with a huge, shocking tax bill that will make you financially unstable.
Be Focused On Property Maintenance
It’s important to remember that one of your top jobs as someone who owns property is to keep it in good condition. Not only will that mean that you’re able to charge more rent, but it’s also human decency to make sure that your tenants are living in a safe, healthy, happy environment. Make sure that you have reliable plumbers, decorators and electricians on speed dial to sort out any problems that might occur, and remember that if you have single female tenants then they might prefer to have women working on their property instead of men. Make sure that you’re sensitive to the needs of your tenants. When your tenants leave and you’re looking for new ones, make sure that you use that as a time to update the house and keep it in great condition – you need to respect the people who will be moving in and ensure that they’re living in a comfortable home.
Be Contactable And Reliable
It’s important to remember that you should be easy to contact at all times. Building a good relationship between yourself and your tenant is key to your success in investment property management – you should be able to communicate well with them so that you can assuage their worries or concerns. This will also make you a lot less worried about the potential state of your property – even if they have a security deposit (which of course they should) it’s important to know that they’re going to treat your property well and with respect. Building up a good relationship with your clients by being around and easy to contact will also ensure that they want to stay in your property for a long time. This is good for you because they’ll treat it more like their own home in that case, and you’ll also get to avoid a lot of paperwork and hassle if you don’t have to change tenants!
It’s important to be aware of any issues that might be going on, so make sure that you keep your eyes open – when you drive past, make sure that the neighbours’ homes are also in good repair so that your tenants aren’t having any issues with them. If there are any problems with rent, make sure that you get on that immediately – solving problems as they occur is the best way to make sure they don’t turn into huge dramas.