Nothing appreciates quite like land, a finite commodity that is always in demand and as the global population increases, real estate will be much sought-after. Who wouldn’t like to buy a few prestige properties and sit on them for a few years? There is a better idea than holding empty property and that is getting into the rental market, which we look into in this short article.
Acquiring houses
Of course, you want to buy property that is in the right location; consider teaming up with a local builder and buy houses at auctions for a knockdown price. The good thing about such auctions is that the owners (usually banks) only wish to recoup their investment and they are prepared to let homes go at much less than market value, just to liquidate the assets. You need to crunch the numbers and see what you can charge for rent and if it looks good, the builder can use Real-Crete to bring the house up to scratch, ready for occupation.
Property management
We advise you to connect with a reputable property management company, as they can do the following:
- Source and screen potential tenants
- Prepare tenancy agreements
- Provide essential upkeep and building maintenance
- Handle tenant issues
- Manage rental payments
They can also provide security if the property is unoccupied and most rental property businesses make best use of property management companies, leaving them free to focus on other things.
Round the clock legal advice
Your property management company employs a teal of property lawyers and they are just a phone call away for free advice. If, for example, a tenant has contacted the local authorities and you have been informed, don’t respond until you have received legal advice. The laws are very complex and the tenant has a lot of protection and without consulting a lawyer, you could make a costly error. This is an invaluable service that is yours 24/7, so you can rest assured you are always in compliance with tenancy laws.
The first thing to do is write a business plan that demonstrates clearly how you intend to make money by acquiring old properties, renovating them and renting out to professionals and companies.