When DIY is tempting…
STOP and ask yourself some tough questions.
There are many things you might be tempted to do yourself and some of them can put you at risk. Risking your health… Risking your finances… Risking your lifestyle…
2023 could be a pretty good time to become a landlord with demand for rentals worryingly high, rents continuing to rise and high interest rates keeping many potential first home buyers in the rental market.
You might think ‘Why not buy an investment property and manage it myself given tenants will be falling over themselves to rent my property? Think what I can save in these management fees. How hard can it be?’
All may not turn out as rosy as you would like to think. So, time for answering yourself honestly:
How will I find and screen my tenants?
With so many people needing a roof over their head, a social media post or a sign in the local shop window might draw considerable interest from prospective tenants ready to move in tomorrow. It’s not about just getting tenants in, it’s about getting quality tenants who’ll pay the rent on time, respect your property, be courteous to the neighbours, give fair notice when they want to move out, and so on. Do you have the skills to screen prospective tenants, dealing with matters like credit and background checks, confirmation of income, talking with tenants’ previous landlords etc.
Do I have the time to devote to being a landlord?
There is more to it than getting the tenant in and siting back and cashing rent cheques. What about when you have to drop everything to deal with a pressing issue relating to the property. Emergencies are real. Are you willing to respond in the middle of the night or early morning hours, while you are on holidays or on the golf course, or watching your child about to score a goal.
Can I manage the property from anywhere?
You might be able to sort out a lot of issues when you live close by but are you prepared to tie yourself down in that way?
Investing in a rental property is a dependable method of building wealth. Know exactly what you’re getting into and give yourself the best chance of success by enlisting people with the expertise to help you.
SOURCE: RE/MAX Australia
