Developing an investment property portfolio is very tempting as it can be a great way to grow your wealth. In the current rental market, the demand for properties has never been higher. The rising cost of houses has led a lot of people to switch to renting which means that there is a lot of space in the market for new landlords. Don’t mistake this for a chance to get rich quick. Becoming a landlord is a serious investment and not one that’s for everybody. It takes lots of time, work and dedication. But if you feel like you’re up to the challenge, here are a few ways to make sure you’re getting off on the right foot when becoming a landlord.
Start small
It can be tempting to think about the possibilities of becoming a real estate baron right away. But before you get to wrapped up in the idea of owner dozens of properties, let’s remember that everyone has to start somewhere. Start with something like a single-family property. That way you can get a feel for what’s required of you at the most fundamental level. You can get a feel for the sorts of maintenance that you’ll be required to undertake as a landlord. As well as the bookkeeping and other work that’s required. Keep things as simple as possible when you’re starting out. Homes with elaborate gardens might seem like a great way to draw in tenants. But don’t forget that maintaining them will be a lot of extra work and that work will almost always fall on you.
Don’t go it alone
Starting out it’s very easy to get overwhelmed with the amount of information you need to know. It’s a good idea to get some professional help wherever you can. Make sure that you consult a tenancy lawyer to keep you up to date on the rights of tenants. Get an accountant and make sure that you’re aware of good tradespeople for services and maintenance. Property management services will also help you deal with many of the administrative elements of becoming a landlord.
Be good to your tenants
Remember, your tenants are people. They rely on you just as much as you depend on them. The most expensive part of being a landlord is vacancies. An empty property is just wasting your money, and every time a tenant moves out, you’re going to find yourself spending a lot. The best thing you can do is to find tenants that will occupy your properties for long periods. And the only way to do that is by treating them well. Make sure that any maintenance and repairs are done quickly and efficiently. Treat your tenants with respect and they are much more likely to do the same for your property. By keeping them happy, you’re going to be able to see returns on your investment year in and year out.
