Whether you are a beginner or experienced landlord, every investor has the same reason for buying an investment property: to make a profit.
Even though property investment has risks, many people are still willing to jump into the housing market and make money either through reselling or renting. According to Property Update Australia, out of the 9 million dwellings in Australia, 8 million are held by investors. With so many builders of investment homes, property has become easier to acquire.
Your investment home can be the start of a strategy to build wealth if you make the right decisions. Housing prices fluctuate, so the time may not be right to sell. However, with the right property in the right location, renting offers consistent returns.
Market your property well
To receive quality applications for your investment home, use several marketing strategies to increase exposure to potential tenants. Thanks to the internet, you can list your property on a real estate website. Consider who you want to attract and target them. For example, if your property is near a university or the central business district, gear your advertising towards students or employees.
Be rent-ready and conduct regular inspections
Your property needs to be rent-ready before advertising to tenants. A renter has responsibilities for tenant safety and access to basic utilities as outlined in the Residential Tenancy Act (1997). Although the regulations differ from state to state, the overall objectives are the same. Some of the obligations include: a signed copy of the residential tenancy agreement to the tenant; the property is fit for purpose, including adequate security measures; receipts are given for rental payments, and that sufficient notice of any rental increase, change in lessor and termination of the contract is given.
Before the tenant moves in, you need to inspect the premises with them and agree on the contract’s terms and conditions.
Once the tenant occupies the house, make a point of conducting regular visits. Ensure that your investment home is well-kept and that you are fulfilling your contract obligations regarding repairs and maintenance.
Carefully screen applicants
Don’t choose your tenant without screening them. Having a difficult tenant can be expensive, legally complicated and time-consuming. Ask potential lessees for verification of income and employment, their rental history, and a criminal record background check.
Avoid high tenant turnover
High tenant turnover is not good for income and your reputation as a lessor. Establish good communications with your tenants and be responsive to their concerns. Show appreciation to your tenants for their caring for your property and paying rent on time.
An investment home can help financially secure your future. However, success relies on how well you maximise its potential.
Begin inspired living with Maidment Group
Maidment Group provides innovative and ready-to-move-in homes that are suitable for any lifestyle. For over 40 years, Maidment has build homes to suit the North Queensland way of life. We provide investment homes by builders in Townsville at attractive prices.
Get in touch with us today and secure your future with our quality investment homes.