Property Management & Investment Guide
A few thoughts on purchasing and managing investment property...
Property represents a very secure, sound, long term form of wealth creation. As such, many people are turning increasingly to property investment to secure their future.
A well managed investment can offer many advantages including income and capital growth. Many investors may also be able to use their investment to reduce tax payable on their assessable income.
Property is also a good option as part of an investment portfolio, particularly with people who do not need immediate access to their money and wish to protect themselves against inflation over the long term.
It is important, however, to be aware of the responsibilities of managing your property investment and assuring proper care and responsibility. As considerable money is at stake, you need to take the time to get good advice before you act - and remember, consideration of any investment presents wide and varied alternatives and there are always plenty of experts ready to pass on their opinion. It is wise, therefore, to always seek appropriate advice from a qualified financial advisor or your accountant.
There are four factors to also consider when investing.
Treat Investing like a Business
Don't treat your investment property as a hobby, it is a business. As an investor you will need sound accounting practices. Leases must be set up using defined guidelines and all the steps in the process must follow a particular sequence. By using a qualified Property Manager you can ensure the maximum profitability of your investment property.
Don't Neglect your Property
Make sure all repairs are conducted quickly and properly. This will encourage a tenant to stay at the property long term and also to look after your investment. Regular inspections ensure that all health and safety regulations are being met and that the tenants are maintaining your investment to the standard they received it. Keeping a property safe, promoting long term tenancies and ensuring your property value moves with the market are all part of the benefit of using professional services.
Properly Screen Tenants
Rushing into accepting a tenant without properly screening them could result in a loss of income to you in the long run. Some investors may be tempted to place a tenant into their property so they don't have a longer vacancy period. At TracyRoberts Real Estate - Wentworthville we fully screen all potential tenants not just by checking employment details but also all industry databases for bad tenants as well as rental history and character references. Taking the time to find a good tenant will save you time and money in the long run.
Enforce Lease Terms and Conditions
Try not to have an emotional attachment to a tenant. Don't let them get away with not following the terms and conditions of the lease such as paying the rent late. Begin eviction proceedings as soon as legally possible. Remember it is you, the Landlord, who will receive the bad credit rating should your loan repayments not be made, not the tenant. Ask TracyRoberts Real Estate - Wentworthville how a little leniency can create bad habits in a tenant and with swift action you are able to minimise any potential losses.