Property Investing in The 21st Century

Investment Property Made Easy

If you’ve decided to invest in property, renting it out is a great way to ensure that the property is paying for itself. And, if you’ve made a great investment, chances are there will be some income on top of that monthly mortgage payment.

When you own an investment property that has a mortgage payment, you want to be sure that you aren’t going to be left in the cold with tenants who don’t pay on time. You’ll also want to be prepared in case the unit is vacant for a while so it’s important to:

1. Have several months of mortgage payments set aside and
2. Find the right tenants

Saving some money for emergencies such as repairs and covering payments if the property remains vacant for some time is part of good financial planning but:

How do you find the right tenants?

* Have prospective renters fill out an application
* Do an interview and get to know the tenants
* Do a credit check
* Look at debt ratio of the tenant to see if paying on time might be a problem
* Check references
* Ask for a deposit (check local laws about requirement)
* Sign a lease that clearly outlines roles and responsibilities in keeping the property in good condition and other matters related to the property
* Be a good landlord and chances are, the tenants will be better tenants

Be a good landlord

Being a good landlord can facilitate a great relationship with tenants.

Once your unit is rented, do regular inspections (within legal requirements for that area) to see that the property is well cared for and if possible be on friendly terms with the tenants. Make repairs promptly and consider incenting the tenants to keep the property in good shape by offering to pay for paint, wallpaper and reimbursing them for improvements done. Having a good relationship with their landlord will increase the possibility of keeping them there long term. Being approachable about potential problems will work in your favour as well. Problems can happen but if a tenant likes you, they’ll notify you of issues such as financial problems or giving plenty of notice before they vacate. Investments always have a certain element of risk but careful planning will minimise the risk of financial loss.

Renting Out Investment Property Part 1

In today’s post we will look at getting your investment property ready to rent out, and some advice and tips that will make the process a little easier and give you some piece of mind.

Many people are scared away from buying a real estate investment as they have heard to many horror stories in regards to unruly Tenants. We have had a look at these fears in an earlier post and we know that we can protect ourselves and our assets as well.

Finding a good property manager can be a difficult thing in Australia. In the years that I have been involved in property investing, I have met some terrible Real Estate Agents that have done some very questionable practices. The best way to find a good management team is to ask any successful property investor friends that you have. If you don’t have any successful friends then get in touch with someone who is, and ask them for a recommendation. Sometimes the investment will not be in your local area, so you will have to do your research well, to give you piece of mind down the track.

If you want to become a successful Real Estate Investor, then it is important to realise that you should not manage your own properties. Do you want phone calls at midnight about a leaking tap or a blocked drain? It is important to keep a respectable distance between yourself and a Tennant, as then you will not become emotionally involved with them. Leave managing a property up to the experts, while you get on with the real work of investing and enjoying your life.

Having the correct insurance is a must before you rent out your investment property, and you should seek the advice of a good Insurance Broker. The product you want to be looking at is dedicated Landlords Insurance, and ensure that it is covered for things like malicious damage and extended non payment of rent. Read the fine print in any insurance contract so you know exactly where you stand.

Landlords Insurance is surprisingly inexpensive, and on a month by month basis you will not notice the cost. The best part of Landlords Insurance is the peace of mind you get, and the sleep at night factor.

In the next post we will have a look at some things that you can do to attract a better type of tennant and some other advice on renting out your investment property.

Do You Have A Property Team?

In today’s post we will look getting a great property team together when you decide to become a successful property investor. Trying to do everything yourself when purchasing a property might save you some money initially, yet in the long term it will cost you a lot more than you save.

A Real Estate Agent

A decent Real Estate Agent can be hard to find, although one you have tracked one down, keep hold of them and befriend them. Send business their way if you think that they really are good. They will love you for that and will keep you informed of property deals before they are advertised and can give you a lot of information that is usually privy only to other Real Estate Professionals.

A Property Solicitor/Lawyer

Show your Solicitor any deeds and contracts of the investment property before you put an offer in. They will be able to explain to you the fine print and anything else that may be important to know. Try to find a solicitor who is an active property investor themselves, to ensure you are getting the most relevant information.

A Sworn Valuer

When you are buying a property, utilise the services of a valuer who will offer you current and real market prices. This way you can be confident that you are offering a fair price on any investment properties. Look for one who is a little on the conservative side too.

An Accountant

Have an accountant that themselves is a property investor. They will provide you with some figures that will quickly allow you to make decisions, and will also show you the best ways to protect your assets too. Ask any other successful property investors that you know to recommend a good accountant.

So you can see there are certain people that you will need in your property team in order to become a successful property investor. You can do it without their help, although why not use your team as leverage to get you to where you want to be a lot faster.

Real Estate Investment Tips

For anyone who want to become a real estate investor, there is always room for some sound investment advice. After all, why not learn from others past mistakes. There are plenty of ways to get good real estate advice, and there are even more ways that could be quite damaging for you as well.

The Internet is a marvellous resource for getting all sorts of investing information, including property investing. Head for speacialty real estate forums, where many like minded people will trade advice, and assist you with any question that you may have. There are also many specialty social networks nowdays, where you can freely join and become involved.

Your local Real Estate Agent, is still an excellent place to get good tips and when you find a good agent, become a genuine friend of theirs and they will only to happily pass on their wisdom. Look for an agent who is one of the top sellers in your area, and have many years of property experience behind them.

Perhaps the best place to get real estate tips though, is off any successful property investor. This is someone who practices what they preach, and actively takes their own advice. There are many successful real estate investors out there, and many of those are quite humble about their success so you may not realise that even your friends may be amongst them. Anyone who is a successful property investor, will usually impart their knowledge on you, if you are seen to be genuine and grateful.

That leaves us with where not to get real estate tips from, and there are some places to be wary of. Well meaning family, friends, and co workers are the biggest offenders here. Sadly, the advice you get here is unfounded most of the time, and just their opinion. Unless they have investment properties and keep adding to their property portfolio, then it may be a wise move to not ask for their opinions.