Rental property success is really the only reason you’d risk buying a home for someone else to live in. You’re doing it to increase your wealth and property portfolio, not to be philanthropic.
When you rent out a property, there is a lot around rental property success to consider for both renter and landlord. Whilst renting can get a bit of a bad rap, people in various stages of their life rent a property for a variety of reasons – moving out of the family home, relocating from interstate, temporarily renting while the house is being renovated, divorce, and other reasons.
Regardless of whether you are a renter or a landlord, there are four key areas both camps want for rental property success.
Choose Your Location First
The three L’s of real estate – Location! Location! Location! This famous adage suggests that the location is the most important element of all. As a Landlord, you want the most reliable tenants possible. As a renter, you may want the safest home possible or the location that fits your lifestyle.
So knowing your ideal location is a highly important element. Sometimes it’s a balance between cost and convenience – the purchase price which must accommodate a good rental price, how much renters will pay in that area, the condition of the home, and the convenience of transport and services. Rental property success is contingent upon location, rental price, and rental consistency.
Know Your Property Type
As a Landlord, your lifestyle may not be compatible with your rental property. However, the lifestyle of renters is important. Singles, couples, families and older people will likely have different lifestyle needs and desires. Know the qualities and amenities of both the home and the location to attract the right renters, and for renters to choose your property.
If you own a home but renters are only looking for apartments for rent then you’ll both be wasting your time by not being clear on what you have as a Landlord and what you want as a renter.
Both Landlords and renters will have to know their budget. A Landlord will have a minimum weekly rental price they need to have and renters will have a maximum price they wish to pay.
As a renter, rental property success means budgeting yourself so you are very sure about the maximum weekly rent you can pay. You will narrow your search and not waste time searching for a property you just can’t afford. When you sit down to work out your budget, make sure that you are honest about income and expenditure factoring in utilities, car repayments, entertainment, clothes, insurance, and a contingency.
Being A Good Tenant and A Good Landlord
It works both ways. You can’t expect perfect tenants if you, as a Landlord, don’t look after them. For example, for rental property success make sure the home is safe and that all utilities are in good working order. Fix repairs in a timely fashion and allow some flexibility for tenants to create their own livable space.
When you begin renting, it is important to remember that you do have certain duties and responsibilities as a tenant. Above all, you should ensure that you keep your home as clean and tidy as possible, and that you don’t allow it to fall into disrepair. Report faults immediately and allow repair people to access the property. Your Landlord will appreciate that you are looking after their investment.
Rental property success is the responsibility of BOTH tenants and Landlords; so make it work for you.
If you are thinking about buying a rental property then listen to property developer and mortgage broker Joe Tirimacco who has great information on how to leverage your current wealth in order to create more.
And if you are a renter, gain interior design tips from ‘The Block’ judge Darren Palmer or learn how to save $$$$ on clothing and decor from Maury Filosano who supports artists who create cool stuff from recycled items.