Whether you’re looking to break into the rental market for the first time or expand your existing rental portfolio, the aim with any investment property is to turn a profit. How exactly you reach this goal depends on what stage of the journey you’re in, but the tips below will help you get to the profitable stage quicker, no matter where you’re starting from.
Speak To A Local Expert
No matter how experienced you are in the property investment game, unless you’re across everything going on in your preferred location (and have real estate qualifications under your belt), you’ll be missing out if you don’t consult a local expert.
By settling for nothing less than Melbourne’s top property investment consultant, you’ll place yourself lightyears ahead of the competition and quite a few steps closer to turning a profit with your new property.
Do Your Research
Just because you’ve got the best advice, doesn’t mean you can skimp on your research. At the very least, you need to know:
- Which suburbs are appealing to you;
- What type of property you’re after;
- What you will (and won’t) compromise on.
Understanding these factors will help you make the best decisions with the advice you’re being offered.
Receiving neat little info packages alongside recommendations is great, but if there’s a chance that you may want to move into the property in future, you’re going to want to have a little more personal experience with the area and the home.
Have Savings Put Aside For Emergencies
You could find the perfect property, snap it up without any hassle, and get tenants in straight away, but if you’re not prepared for when something goes wrong, your profit potential will be at risk.
In addition to the funds you’ve saved to purchase and insure the property, you should also have emergency money. It’s not completely unheard-of for a tenant’s plumbing, for example, to break the week they move in. If you have to compromise your budget to fix the problem, you could run into issues with debt and unnecessary stress.
Avoid Other Debts
Cash flow is going to be paramount over the coming months, so it’s important that you try to minimise any other personal debts you may have. A mortgage on your house or a loan on an alternative rental property is fine, but if you’re finding yourself running up credit card debt or driving multiple financed cars, it’s a good idea to look at consolidating and paying down your debts first.
Style It Right
These days it’s pretty common to find houses that are rented out fully furnished, and if you have the means to do so, this can help you fetch a higher rental yield which in turn leads to achieving profitability faster.
The downfall here is that furnished properties operate in a more niche market, so make sure that you style the house to suit the needs of your ideal tenants. Either way, a great trick for creating a cozy vibe at viewings is to have an aroma diffuser tucked away somewhere, delivering a gentle, comforting scent.
Rental properties can be a reliable source of passive income. However, they must be set up and managed correctly. By following the tips in this article, you’ll be well on your way to achieving profitability, but that doesn’t mean it’ll be easy. Like any investment, there are risks to being a landlord, and you should always speak to a professional to ensure that your financial security is protected before making any major purchases. Good luck!
