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If this is your very first investment property or if you’re still considering making the investment, you’re probably looking for some much-needed tips. There are, after all, a lot of nightmare stories about landlords who need to take their tenants to court in order to evict them – and there are many tenants who won’t take care of your property at all.
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In fact, they might make it quite unliveable and even cost you a small fortune if you don’t pay attention to who you’re renting it out to. Here is a quick guide to getting it right when investing in property you’d like to rent out as well as how you can boost its value slightly.
There are many roads to becoming a bit richer and one of the fastest routes are through real estate.
First: Find the best area
Good areas attract good tenants – or, at least, so they say. Investing in a great area is alpha omega when buying property but it’s not always that easy; the apartments tend to be a bit pricier, first of all, and you might find yourself in a situation where you’re unable to afford the best apartments in the best areas.
A way around this is to settle for something smaller or even a bit shabbier in order to land an apartment in a good street. Now you’ll at least secured that the area is right and you can start to focus on fixing the apartment up slightly.
You could do this yourself, if you’re able to, but keep in mind that this is a project that will last for a couple of months or even a year.
While it will certainly be worth it and you’ll end up with a great-looking apartment in a fancy area, hiring someone to do it for you will certainly enable you to rent it out a bit quicker. Have a look at these long term loans from Evolution Money, for example, and you should be able to get there a bit faster. It’s the kind of loan that will make you slightly richer as soon as it’s paid off.
Next: Find the best tenant
The person you choose to stay in your investment property is, of course, the one who will either make your real estate journey a dream or a nightmare. If you’re not using a real estate agent to find the best kind of tenant for your property, it’s a good idea to read up on all the red flags before you approve someone.
While you should remember to always do a thorough credit check to make sure that they’re reliable and financially stable, it’s also a good idea to ask for references from previous landlords. If they can provide you with this, their credit score is great, and they give you a decent first-impressions, you will usually avoid those rent worries in the future.
They might not be able to provide references from previous landlords, though, and this is where you need to use your gut-feeling when meeting them. A well-groomed, polite, and friendly person who shows up on time is quite likely to take care of your property as well so use your good instincts and give them a chance if they seem proper.
When you have found a property in a good area, you’re a bit more likely to attract good tenants as well, though. Look for somewhere that is close to schools or kindergartens, and you might be able to secure a stable and financially healthy couple. They’ll make your property into a home, after all, and will probably stay there for a few years as well.