Are you looking to invest in rental property? Here are some tips...
These are great financial tips that involve administration, insurance, reno, and maintenance, and tenant relations...
There is an esteem to owning a property, something of a great achievement.
But with that great achievement comes great responsibility. Not to mention the property laws surrounding landlords and tenancy.
Therefore, we think it pays to be informed before moving forward with becoming a property owner. And if you're already a property owner, then it pays to stay informed either way.
One of the first and most integral tips is to know the law.
"Landlord and tenant regulations vary depending on where you live, so be sure to familiarise yourself with local laws before diving in." (MSN)
Another important tip is to do your research.
To learn about rental rates and property values, get in touch with a property or real estate agent. They will be able to advise you best, in terms of the value associated with the property and the industry standard on what to charge.
A valuable tip is to live in your own rental property.
"Whether you’re in the process of purchasing a rental property or already own one, living in the dwelling yourself can really pay off. You can eliminate your own mortgage, while the other tenants cover—in whole or in part—the mortgage on the building." (MSN)
Having a bond on your name can also be stressful with the rise and fall of finances. So, best to pay off your mortgage faster. Commit to lump sum payments and incorporate your goal into your financial strategy or payment plan.
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It may not seem necessary, and it may be stressful, but setting up an emergency fund or contingency plan will benefit you.
"Unexpected expenses can pop up at any time, and if significant, they can put your financial health at risk. Don’t overlook the value of setting up an emergency fund, and remember, the secret is to start saving early." (MSN)
As morbid as this sounds, it pays to be mindful that you may incur financial difficulties and be unable to make your bond payments. Case in point, COVID-19...
There is such a thing as mortgage insurance, and you can chat to your real estate agent about options.
All in all, the best advice is to stay on top of things, whether that means ensuring your property is up-to-date with renovations and maintenance, or property laws that may affect you.
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