Ways to minimise your risks - Tailoring your investment

When you make the decision to become a landlord, there are a number of ways to minimise your risks. These include:

Tailoring your investment to the ideal tenant.

There are two types of tenants in the world:

Those who choose to rent for lifestyle, who are reasonably comfortable financially and who are living in a rental home because it suits them, and

Those who are renting because they are struggling financially, and they live with only 1 or 2 weeks living expenses in the bank – meaning they are always just one small emergency away from being broke.

Choose locations and types of properties that appeal to tenants in category #1.

These tend to be the more affluent established inner and middle-ring suburbs of our capital cities.

If you think about it, when you eventually want to live off the income from your property portfolio your income is going to be dependent upon your tenants’ ability to pay your rent and keep paying increasing rent over the years.

Of course, this is not a judge of people, but I would only buy investment properties in locations where the tenants are better off financially rather than one week away from broke.

RealRenta has all the tools that a property manager has, but at over ¼ the cost of a property manager.

Join now and the cost is less than a cup of coffee a week to manage your rental property

RealRenta also has a free vision, so why not check it out

Jason Gwerder
Tuesday, 6 July 2021

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