Well firstly we need to ascertain what is important to you and what type of investor you are. Let me explain:
Some investors are only focussed on a high yielding investment (yield:produce or furnish;payment profit or interest) income or return of a property without nessesarly being focussed on location or type of property.
For most first time investors we recommend they look at a number of variables which have a strong bearing on the overall performance of your investment.
Let’s recognize some of these variables and see how they could impact on your investment.
Location: Just remember that your market (the tenants) are the same as you and I, and have the same needs... So... Does the location work for you? Are there local amenities at the tenants disposal? Is transport close? Shops and schools within walking distance and within a safe radius of your choice of investment?
The home: Does the home present well or is of an acceptable standard that a tenant and their family could be comfortable in? This fact will be high on the tenants priority list, so it needs to be high on yours. If the home presents well it means that it negates the need for immediate or soon to be scheduled maintenance. The last thing you need when you have outlaid all the money to buy a home, is to have the addition of a hefty maintenance bill to add to your bottom line.
Features and facets of the home: Over many years of managing investment property for our clients we have analyzed which properties regularly out perform others and have recognised what these keys facets are;
The homes promotes a safe family enviroment, is fenced, is located in a quiet area, has a security system installed and has good garaging, always proves popular.
The homes insulation and heating sources are top of mind with Tenants at present as these issues add to the running costs of their home and is a contributing factor to the the families well being. If these things are present we find that the tenure of the tenant is considerably longer than houses that don’t have these features.
These are just some of what are important facets of a rental property purchase. All of the above will assist in attracting a quality long term tenant and the longer a tenant is insitue means a consistent stream of rental income is assured.
Last but not least choose a rental manager that has the right level of experience, knowledge and set of skills to maintain your property and tenants performance at it’s optimum level.