Those thinking of taking advantage of the recovery in the rental market should consider the following questions :
1 . How much is enough ?
Property can be an excellent investment , but you need to take a long-term view in order to achieve real value . You also need to be realistic about whether you can afford to be a landlord .
When doing your sums , ask yourself whether the rent will cover your bond , rates , insurance , and maintenance . You will also need to be able to put extra aside for those times when you might have a vacancy or an expensive repair .
2 . Do you have the time ?
It takes time to market a property and show prospective tenants around . And once your tenants have moved in , you will need to be able to respond rapidly to their requests and complaints .
Sometimes maintenance issues cannot wait . If a geyser goes , for example , you need to be there with your plumber as soon as you can to prevent damage to your property and your tenants ’ belongings . Good tenants are worth keeping happy , and a quick response is important to them ; at the same time , your property is a significant investment , and you want to minimise potential damage . Ongoing property management and maintenance require a significant number of hours and can be difficult if you have a demanding full-time occupation .
3 . How will you screen your tenants ?
Getting stuck with a bad tenant can be mentally , emotionally , and financially disastrous . Therefore , you must not cut corners when vetting your tenants - thorough credit checks must be done , and all references should be followed up .
Only with strict tenant vetting and monthly management procedures
SA Real Estate Investor Magazine NOV 2022 41