Being a good property investor involves more than just purchasing properties – Consider these tips before you dive into property investing.
Treat Your Property Like A Business
A successful investor treats their property like a business. Be clear about your investment goals, objectives and investment systems to help build yourself a successful property portfolio. Research the market and ask your property manager to help you make informed decisions, before following through with purposeful actions.
As with any business you need to decide on what you’re going to offer and who your customer will be. We see that the most successful investors and developers stick to a set “formula”. Some buy only apartments, other houses. Some developers specialise in low rise, others high rise. They have their niche and tend to stay close to it.
Spend Money To Make More Money
Investing in the condition of your rental property is a great way to maximise its cash flow. Consider what tenants in the area complain about. Is the property cold and damp? Installing a heat pump and dehumidifier is usually a one-off cost that can help increase the attractiveness of your property, reduce vacancies and increase its rental value.
Choosing to install insulation now can help you take advantage of these same benefits, while helping you avoid the rush in 2019 when the law requiring insulation within all rental properties becomes compulsory.
Understand The Law
You don’t need a law degree, but having a good understanding of the Residential Tenancy Act will prevent you from ignoring your tenants’ rights and help you avoid future legal messes that can cost you a lot of time, money and stress. A good property manager will understand the law very well and how it applies in practical situations.
Treat Tenants With Respect
As the old saying goes, treat those how you wish to be treated. It’s easy to forget that your tenants are living inside your investment property, being respectful towards them can help encourage them to be respectful towards you and your property, and help them remain to be good tenants.