The key to an informed purchase and continuing growth is keeping up to date with the property market. Fluctuating factors such as the economy and social norms affect the property market greatly. Do your research and find out what property is best to purchase at present that will continue to benefit you even when social norms and the economy change.
Your tenants are the heart of your rental experience – keeping them content is important. As a landlord, you need to consider more than the legal regulations of the Rental Housing Act, you also need to keep the lifestyles of tenants in mind. Finding a property that gives your tenants access to that which suits their lifestyles will ensure constant occupancy of your property. This is also a good way to regulate the type of tenants interested in your property. Quiet neighbourhoods with coffee shops and book shops close by will attract a different tenant than properties close to a shopping mall, for instance.
Make sure the price is right. Times are tough financially, especially for those who have to rent a property. Tenants go for the more affordable option, so make sure your price is comparable to similar properties. Also, ensure you adjust your rent according to the rise and drop of the economy – asking too much when it’s already difficult to make ends meet will not only result in unhappy tenants, it could also result in your tenants falling behind in payments.
When you do decide to increase the rent, think about whether the benefit is worth it. Consider lowering the 10% increase norm to 5%, for instance, as a compromise that will keep both parties happy. Keeping reliable tenants is always a better decision than finding new ones. Even when your return is lower than it could have been, a reliable investment is better than gambling for a bigger one. And remember, keeping the property in good condition, with regular inspections and maintenance, is just as important as considering your tenant’s bank account.
Make the most of your rental property and build a lasting relationship that ensures a reliable investment.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)