Are you a newbie to property investment? Are you unsure of how much rent you should charge your tenants? Or do you want to know the rental income that you will get from your property? If the answer is a big yes, then it is a good idea to look for a rental appraisal from one of our local property managers. Our appraisals use the latest figures in your area to give you an idea of how much you could earn from your property.
View property investment as a business, not a hobby
Shifting your focus from regarding property investment as a hobby to property investments as a business venture is a great way to focus and get serious about your goals and decisions. In order to achieve this, you need to think like a businessperson and leave emotion out of the equation. Your decisions should always be based on research and evidence alone. What do the numbers tell you? When looking for property, you need to consider the type of tenants you want to attract, the ongoing maintenance cost and how the local rental market looks like. It is very important to be prepared to walk away if the numbers don’t just add up or if the property does not match your criteria. If there is a property in your portfolio that is not stacking up, sell it and replace with one that will suit your needs.
Develop a clear property investment plan
- What goal do you want to achieve?
- What is your current situation?
- What do you need to do to go from where you currently are, to where you want to be?
- How will you measure this?
- What do you need to get there?
Create an investment strategy and stick to it
Having a good investment strategy is very important especially as you add more properties to your portfolio. This will depend on your individual circumstances. For instance, those who are almost retiring are looking for strong cash flow to live on. On the other hand, young people are looking for capital gain that is, something that may double in 10 years. Regardless of the approach you take, ensure that you stick to it! Choose to grow slowly while maintaining enough flexibility to close quickly if the right opportunity strikes. Work to your strengths by sticking with what has been successful for you.
Review your investments and portfolio on a regular basis
You cannot manage what you don’t measure. This is also true of property investing. A good thing to do is to sit down and go through your portfolio from time to time. Find out what is working and what is not working. Are your rents and mortgage in line with the current market? You also need to think about insurance rates- Are you paying a competitive premium, and do you have the right level or type of insurance?
Make it happen!
The most important thing to do is taking action. Check your diary and set aside some time each and every week to focus on your property investing activities and goals. Following the tips above will help you succeed in property investment and enable you to have a constant stream of income.