Investor advice: Choose rental homes as carefully as your own
Category Landlord Advice
If you're buying an investment property, you should apply the same "rules" about position, condition and security as when buying a home for yourself.
Volatile equity markets, falling interest rates and banks keen to lend on residential property have spurred an increase in buy-to-let purchases this year, in spite of slow rental growth rates.
An oversupply of new units in many popular areas and negotiable prices are also drawing investors back into the market, but they do need to remember that while price is important, cheap is very seldom best. The area in which a property is situated, its overall condition and security considerations are all equally important when acquiring a home to let.
And finding the right property - as well as reliable, creditworthy tenants - should never be left to luck. Buyers should seek out a qualified, experienced and reputable estate agent to help them evaluate the soundness of any proposed property investment, and to help qualify prospective tenants.
Over the medium to long-term, they wll also need to be certain that the property is well cared-for and maintained and that the rent is paid on time. This is where appointing a specialist to manage the investment makes good sense.
Few investors are prepared or able to be full-time landlords and this responsibility is best delegated to an experienced, well-briefed rental agent based in the vicinity of the property.
For a start, such an agent will be able to deal objectively with tenants who don't pay or who damage the property - and should also have an established network of competent contractors to carry out necessary maintenance and repair work.
In addition, an agent who specialises in managing rental properties will also ensure that the investor receives professional advice on the host of laws and regulations that govern landlord-tenant relationships, and on compliance with and changes in municipal regulations.
Author: Meg Wilson