Real Estate Investor Magazine South Africa April 2014 | Page 32

STRATEGIES BY WESLEY BARNARD First time landlord? A handful of helpful tips for you R egardless of whether you are an investor who found an excellent income generating rental property or a homeowner renting out your property, a cottage on your property, or an extra room in your home, meeting the requirements of being a landlord is more intricate than simply signing a lease agreement and collecting the monthly rental fee. Owning and renting out a property can be a rather complex process that can take a fair amount of the landlord’s time, depending on the situation. For this reason it is highly important that those considering becoming a landlord or who have already become one, consider a few aspects to help them along the way. 1 CLEAR TIMELINE While there may be some investors who are able to find a rental property that can generate a rental income that covers all the costs, generally this is not the norm. A rental property may pay for itself in the long run, perhaps once the bond is paid off of the market booms, but initially there will be a cost involved in owning a rental property. This cost could be the remainder of the bond repayment or maintenance costs, but there will be a cost. It is always important to remember that property should be viewed as a long-term investment - regardless of whether the buyer has bought the property to live in or rent out. Property is a solid appreciating asset that can be used as a cornerstone for wealth creation, but it is not a get-rich-quick purchase. Turning a rental portfolio into a profitable business is more like a marathon than a sprint. 30 April 2014 SA Real Estate Investor SUBSCRIBE www.reimag.co.za