Many people care more about money than thXey do about the people around them. This phenomenon is especially unpleasant when it results in those people being hurt or taken advantage of; one aspect of this sort of avarice that is in the news a lot, especially in big cities, is the exploitative and aggressive attitudes that some property owners have towards their tenants. It most often manifests itself in absentee landlords charging exorbitant rents while not fulfilling their responsibilities to maintain the property to a standard such that it is safe to inhabit. These so-called ‘slum lords’ can sometimes even go so far that they break the law all in the name of maximising profits (in some cases, they wish to induce tenants in rent controlled apartments to leave because those arrangements are no longer as profitable as they could be in light of inflation). In any case, if you currently have a property portfolio, or you want to build one, here are a few tips on how to invest sensibly so you can make your property profitable for you and comfortable for your clients:
First, before you can worry about providing a reasonably priced, safe environment for prospective tenants, you need to make sure that all of your financials are in order before you think about buying a property. If you are new to property investing, this can be a long process. Securing a mortgage is crucial and you need to make sure that you get one that suits your needs. If you intend to buy to rent, then you will hopefully have a revenue stream as soon as you find a tenant but you should prepare for a situation where you can meet your financial obligations without that proviso. Depending on the state of the economy, you may have to charge less than you planned for, or you may not be able to find someone at all. If this does happen, you will still need to pay your mortgage every month. Having a backup plan is therefore important.
Once you have secured the requisite funding, you will then need to start looking for a property. This obviously depends on what you want to do with it. An apartment in a big city that you could rent out to young professionals could be just as sensible an investment as a small cottage in the countryside that you lease to vacationers. As long as you can cover your expenses and make a profit too, it is a good choice. However, when it comes time to finding tenants and dealing with tenancy agreements and security deposits, you may want to consider retaining real estate management services. They will make sure that both you and the tenants get an equitable deal with competitive but not exploitative rental rates. For a small commission, they will take care of everything for you and send you your money each month.
Purchasing properties and running them well, ensuring that they are clean and hospitable, while also making a living for yourself is a great way of doing business.