1: Finding a Good Rental Property
Entire books have been written about finding a good rental property. So much text has been dedicated to the topic because of its critical importance. Buy the wrong property and you’ll never make money. Keep in mind that buying a fixer upper requires that you have the skills, time, tools and cash to make the necessary repairs. If you’re in no hurry, this may be a way to get a bargain on your investment. If you already have a full-time job and a family, time is money, and every minute spent repairing the rental is a minute not spent on a more profitable or enjoyable activity.
2: Preparing the Unit for the best rental income
Getting the unit into rental condition often requires, at a bare minimum, carpet and paint. Both items require time and money. Window screens, deck stain and lawn maintenance are other common needs. Every time a tenant departs, these issues need to be revisited, after all, fresh paint and new carpet go a long way toward making a rental property look great.
3: Finding good responsible tenants
The internet provides a fast and inexpensive way to find prospective tenants. Of course, you often get what you pay for. Increase your odds of getting families and responsible older adults. Using a dependable rental agency will take small bite out of your wallet, but by using a good rental agency you will save yourself a lot of worries and headache’s. It’s a lot easier to play on a person’s sympathy than on a rental agency’s sympathy. The investment is well worth the time and money, as a proper rental agency who is screening your tenants increases your odds of getting a responsible tenant.
4: Maintenance and Hassles
Even great tenants and perfect rental properties come with a host of hassles. Broken pipes, stuffed drains, broken garage door springs, pets and roommates are just a few of the challenges that arise. Even good tenants want your full attention when sewage is backing up into their home or the cable company accidentally cuts the telephone lines. Bad tenants are an even bigger challenge. Daily calls and late or unpaid rent can add up to the hassles.
Move-out day is another challenging time. Damage to walls, floors, carpets and other components of the home can lead to disputes and costly repairs. Since every moment wasted arguing is a moment the house sits vacant, you are often better off biting the bullet and paying for the repairs yourself. See our solution to this problem – Click on Packages for Landlords.
New appliances cost hundreds of Rands; you can find yourself losing money fast. Add in carpet, paint and a new stove, and tenants that don’t stay long – and the property could lose money for years. Click on Maintenance Packages.
5: Interest Rates
What do interest rates have to do with anything? Plenty! When rates increase, it’s often cheaper to rent than to buy! That is why when your monthly installment to the bank increase, your demand for rentals increase and with demand your monthly rental income increases. You win!
6: Ideally, you want to live near your rental property
Living close to your property allows you to check on it periodically. But even if you don’t live in a prime rental region, you can still invest in one by hiring a property manager/rental agency to take care of day-to-day details. Click on Packages for Landlords.
7: Make sure you can enforce that the rent is paid on time
This seems like a no-brainer, but believe me, if you get too friendly with your tenants, you might just let them slide a couple of weeks beyond the first of the month, or allow a partial payment when they’re between jobs. Before you know it, your tenants are six months behind and you’re struggling to make the mortgage payments. Get some distance from your tenant by using a rental agency. Click on Packages for Landlords.
8: Make sure that your rental property are inspected regularly
Take pictures and fill out a detailed list like an inventory to establish a base line. Conduct a quarterly inspection. If you find problems act immediately by issuing a notice to comply. Inspect in a week’s time. Click on Packages for Landlords.
9: Understand this is not a get-rich-quick scheme
Being a landlord is not just sitting around collecting a big amount of cash each month. You’ll need to spend some money to ready the property for tenants, buy landlord insurance, and pay property taxes. Think of being a landlord as part of your overall investment strategy. Click on Packages for Landlords.