Purchasing a property is a big decision with many factors to consider. For those purchasing an investment property, these factors will vary significantly when compared to purchasing a family home. To get you started on making an informed decision, here are just some considerations to keep in mind.
Plan for periods without tenants
While renting out your property is a great way to pay off the mortgage, there’s no guarantee your property will remain occupied 100% of the time. Before you select and purchase a property, it’s important to ensure you’ll be able to cover the mortgage costs yourself if you have to go extended periods without any tenants.
To limit these periods, don’t skimp on advertising and ensure your property is getting in front of the right tenants at the right time.
Extra costs
Unfortunately, there’s a lot more to getting an investment property than buying it, renting it out and watching the money come in. There are a number of ongoing and one-off costs to consider on top of the initial purchase price. The costs that apply to your circumstances will depend on the type of property you’ve invested in, but just some costs that may apply are body corporate fees, council rates and ongoing maintenance and landscaping.
Not every expense is a must have, but they’re certainly worth it to cover yourself and ensure peace of mind. One of these costs is landlord insurance. Even if you select reliable tenants, there are situations beyond control that can have an impact on your income or the value of your property. Depending on the type of cover you choose, landlord insurance can cover you for situations such as loss of rent, fire, vandalism, and legal liability.
Professional inspections
Renting one of your biggest investments to someone else can be a nerve wracking experience, so you’ll want to ensure your property is maintained and cared for the way it should be. Regular building inspections are a must, but are often too time consuming for a landlord to perform themselves. A professional rental inspection may be the perfect solution as it not only puts your mind at ease; it can help you comply with your obligations to provide a safe space for your tenants.
With extensive experience in both commercial and residential structures, your rental inspector knows exactly what to look for to ensure your property is well maintained. As well as standard checks such as the cleanliness of each room, a professional inspection can also check those important extras such as the integrity of the building structure and existing appliances.
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