Residential property investing is a great way to set yourself up for the future. However, it is important that you get everything right from the start otherwise things may not turn out how you had planned and not work out how you intended them to!
Make a Plan
It is important to have a plan in place for your future in property investing. Your plan should include how many properties you are looking to purchase, what locations, the yield you are after, what kind of tenants you are looking to attract, and are you going to buy & hold or buy & and sell along with other things that are important to you.
Create Connections in the Industry
Ensure that you create relationships with people that you can trust and rely on in the industry such as a property manager, accountant, lawyer, real estate agent, builder and electrician.
Save for a Rainy Day
Plan ahead by putting some money aside on a weekly basis for repairs and maintenance. This will ensure that as maintenance issues arise you are prepared for it and you can keep the property up to scratch at all times. This will also ensure that the property attracts a good tenant, you get good rent and when it is time to sell your property should achieve a good market price.
Prepare for bumps in the road
Occasionally there are teething problems at the start of a tenancy. It is advisable to ensure that anything that you think may be an issue at the property - get it sorted before a tenant moves in this will minimise issues at the beginning of the tenancies.
Make it Easy For Your Tenants
Have a binder full of information about the property with things such as copies of user manuals, instructions on how to operate appliances, garden care, pool care, operating water pump and bio cycle if applicable for your property. Install a lockbox at the property and have a spare key so the tenant can get back into the property should they get locked out.
Use your head and not your heart
Ensure that you understand all aspects of the Residential Tenancies Act 1986 otherwise you may find that you may put yourself in an unwanted situation. If you do not have time to brush up on the RTA it would be advisable to employ a property manager to look after your property as they know the Residential Tenancies Act very well.
Run your Investment Property Like a Business
Ensure that you maintain a business like-mind set with your investment property. I would recommend looking at using software like Xero to assist you with your current properties and future investment properties. There are so many good reports in Xero which are very beneficial to investing.
Keep on Learning
It is important to always keep up to date on the market, new legislation changes and any training available for landlords to do.
If you would like more information on becoming a landlord and help with where to invest in Whangarei please do not hesitate to get in touch with us.