Is Rental Property a Good Investment? What you Need to Know
The above question has been asked by many Australian investors who are looking for sound investment opportunities, and the short answer is; it very much depends on several factors. Obviously, your property should be in a good location and in very good condition, which will determine the appeal factor from a tenant’s perspective, and if your rental isn’t too high, you are likely to find a tenant. It is incredibly important to keep your property in good condition, always remember that, so if you have any issues with the foundation or the structure of the property, then it is important that you speak to a Hillside foundation repair specialist or someone in the immediate area, to get what you need sorting out as soon as possible.
Significant Commitment
There are a few people who move into the property rental market; attracted by easy profits and rising land prices, yet they are not fully aware of the huge responsibilities placed upon the landlord of a rental property. As the owner, you are responsible for the upkeep of the property, which can take up some of your time, unless you enlist the help of Image Property management services in Brisbane who offer a comprehensive service for property landlords.
Property Management
Ask any seasoned rental property owner and they’ll happily confirm that the secret to a successful and a profitable business is to find a good property management company, with the necessary management software that can be found at websites like https://www.american-apartment-owners-association.org/solutions/property-management-software/, also one that will handle every aspect of the property, including all of the following:
- Sourcing and Screening Tenants.
- Property Maintenance
- Legal Matters
- Client Interaction
The ideal property management company adopts a flexible policy, enabling you, the owner, to decide what services you would like them to provide, and if you go for the all-in package, you won’t have to do a thing!
Consider the Total Investment
Aside from the initial property purchase and the fees that come with it, you will also have to bring the property up to a level where you can ask top-dollar rent, which might involve full furnishing. Obviously, you would have had the property surveyed, so you are fully aware of what is needed to get the house into shape, and once you have crunched the numbers, you can weigh up your total investment with projected rental forecasts.
Location is Everything
While it might be cheaper to buy a property in a rural area, this will not be as attractive as a property in the suburbs, so do bear that in mind when looking at locations. Yes, it will be more expensive to buy in a popular area, but the rental you can ask is a reflection of that, and in the long-term, you are making a better choice with a more urban property that is accessible to all the amenities people expect.
Obviously, the goal is to have a secure income generated by your asset, which would be provided by good tenants who look after your home as if it were their own. If you hire a good property management company and the property remains occupied, you should be looking at a healthy income that should last for many years.
When looking at your long-term returns, it is important to be realistic regarding property maintenance and repairs, which will take a percentage of your income, yet with some astute property buying and the right management solution, you should be happy with the income the business generates.
