The first steps to becoming a landlord
Category News
If you've decided to buy a property to let it out, you've made a great decision. With enough research, the right property partner and sufficient capital, your investment could help to create a more financially secure future for you and your family. Jawitz Properties looks at what first-time landlords need to know, from how to choose the right investment property and considering all the costs to adhering to the relevant legislation and ensuring that you find the right rental real estate partner.
First things first: Choosing the right investment property
Investors need to remember the old real estate adage of "location, location, location" and consider the type of tenant they wish to attract. While apartments situated near universities will always be sought after, they may not appeal to a property investor looking for older, more stable tenants.
One smart investment strategy is to look for a property in an area that has outstanding schools. Another factor to check out is the crime level in the area you've got your eye on. Before you sign on the dotted line, do some online research and see what similar properties in the area are being rented out for. A final step in choosing the right investment property is to speak to homeowners and tenants in the area and get their take on what living there is like. If you're considering buying a property to rent out in a sectional title scheme, make sure the complex is well run and that the financials are in order.
The cost of owning a house
Owning property invariably comes with costs - some of which you may not have thought of - which can make an impact on the amount of money that you can save from your rental income. For starters, even if the property is vacant, you will need to pay your bond, property taxes and insurance. If the property is part of a sectional title scheme, you'll also be responsible for levy payments. You'll also need to keep the property well maintained and have funds available if your tenant lets you know that there's a leaking roof, burst geyser or broken fixture. Buying a property to rent it out can be a great investment, but it needs to be planned for in financial terms.
Everything a rental agent can do for you
A great rental agent will ensure a smooth start to the relationship between you and your tenant by paying close attention to both parties' requirements. For starters, they will make sure that any prospective tenant is suitable by checking their credit history, employment details and rental history.
Over and above this, your rental agent will be familiar with all the rules, regulations and legislation that pertains to property rentals and will help you draw up rental contracts that safeguard both your interests and those of your tenants. They will also help you to determine the right rental price by undertaking a comparative market analysis.
Jawitz Properties' rental services division has decades of experience and has proven to provide superior service. Contact us for more information about buying a property with the intention of letting it out or renting out a property that you already own.
Author: Jawitz Properties
