Investment Properties: Here’s How to Do it Right
When you rent a home, your landlord may seem like she has it all figured out. Just leaning back, waiting for the rent to tick in, and living of your hard earned money – can’t they just get a job already? Being a landlord can, in fact, be tough enough, though, and especially when you have to deal with rowdy tenants or those who trash your place or refuse to pay up when the rent is due.
If you’re considering investing in a property to enjoy some passive income, you’ve come to the right place. Here is a handful of tips so that you’re able to do it right and avoid the kind of tenants that make your dream of a passive income a nightmare instead.
First: Finding the best area
When you have decided on the country you’d like to put your money in, it’s time to narrow the search and make sure that you’re not investing in an area that is about to be eaten alive by crime and teenage thugs.
If you already know the city rather well, this should be easy enough for you – but, otherwise, you should visit your different options and have a chat with those who live in the area as well. You can learn a lot by simply looking at your surroundings, scanning the area for broken bottles and graffiti, and taking the local amenities into consideration as well.
The more options you have in the area in terms of shops, pubs, and schools, the higher your chances are of finding tenants who would love to live in the area too.
It doesn’t really matter if the street is littered with brown pubs or children walking to school either; for the former, you’d definitely be able to find a young and fun-loving couple while the latter would attract tenants who are in it for the long run.
Find the right kind of tenants
This brings us over to another important point; the type of tenants you allow in will also have a lot to say about how much this real estate investment is going to cost you. Needless to say, some tenants will be better at paying the rent on time than others – but some of them will also be a lot better at taking care of your property than others.
When looking for the perfect tenants for your apartment, try to notice the little things about the ones you’re interviewing. How well they’re going to take care of your property will reveal itself in ways you perhaps don’t think about; are they one time for the viewing? Do they take care of their own appearance?
While you probably wouldn’t be this petty normally, it’s important to think about these things when you’re trying to find someone to look after your property. You want the kind of people who will establish a small herb garden in the kitchen, clean the cupboards thoroughly every other week, and take pride in how neat they keep the place.
It might be a better idea to rent out to a young couple rather than a group of students, in other words, if you’re not prepared to find new tenants at the start of each term. Get these things right and you can definitely lean back a bit more while waiting for your passive income to grow.