When you’re finally in the position to invest in investment property, it’s a good idea to understand both the benefits and the disadvantages. Sure, you can enjoy the passive income and put your feet up for a bit. But many landlords can tell you horror stories about owning an investment property.
We’re talking about reckless tenants, of course, endless complaints from next-door neighbors, and the issues with getting your rent paid on time. Here is a quick guide to how you can avoid the biggest hiccups with your investment property so that you’re able to enjoy the many benefits of owning it.
Getting the Most Out of Your Investment Property
First: Getting the right kind of tenants
Let’s take care of the most pressing issue first. Making sure that your investment property has the best possible tenants to look after it is definitely not an easy task. You can increase the chances a bit, however, as long as you know what to look for when interviewing prospective tenants for your investment property.
The most responsible tenants will usually not be a bunch of 20-something kids, looking for a place to stay during their studies. While they may be hard-working and responsible enough, it’s better to look for someone who has all of their ducks in a row already.
Couples, for example, will want to turn your property into a home while living there. They will naturally also look after the property as if it was their own. Try to find someone who shows up to your appointment on time, looks decent, and treats you with friendly respect. If they don’t tick these boxes, you shouldn’t allow them to stay in your property.
It is important to point out here that while tenants will be responsible for general upkeep when it comes to issues like boiler repair and structural damage, you need to sort out these issues. Making the most of property management services is the most efficient way to do so.
Next: Take pictures of the investment property
You tenant should snap some photos of wears and tears throughout the place. You should do the same to make sure you’re on equal terms. If something should break due to negligence while they’re staying there, you’ll avoid the hassle of arguing back and forth on whether or not it looked like that when they moved in.
You will most likely be called up a few times if something should be wrong with the investment property. Though, and this is just a part of being a good landlord. Consider hiring someone to take care of the property management for you. However, do this only if you already have enough to do and don’t mind the added expenses. At least you won’t have to bother bringing your toolkit along everytime your tenants give you a call.
Third, take pictures of the outside of the investment property
Finally, you should keep an eye on what it looks like on the outside while your tenants are living there. If they’re staying long-term, you’d want to see that they are taking care of the outside as well as the inside. Any signs of potted plants and replaced light bulbs is a huge plus. You should see things like the grass is kept mowed and tidy. Also, there should be no debris lying around your investment property.
Now you are equipped with the knowledge to enter into having an investment property of your own. Do you have an investment property? Do you have advice for our readers? Please leave your comments in the comment box below.