One of the most
important of them all is using property management platforms to do the heavy
lifting for you and help you with all your property management needs.
That’s because to
create significant wealth, investors not only need to be strategic with their
property purchases, they also need to hold for the long-term.
Not
considering vacancy rates
Ignoring vacancy
rates are always a bad idea, whether you are buying or already own a property in
a particular location.
High vacancy rates
mean’s there is too much supply, which will drag down rents as well as yields –
sometimes for years.
You need to
understand that just because you were getting one rent for years, that you can
get the same or more rent now. Rents do go up and down with the market.
Not
knowing the market rent
Whether your
investment property is currently tenanted or vacant, not knowing the market
rent will likely cause you cash flow problems in the long run.
That’s because
advertising it for a sky-high rent will see it sit empty and trying to increase
the rent when the market is soft may motivate your tenants to move somewhere
more affordable.
The best way to
work out what rent you should get when your property comes up for rent or the
lease ends is to look at what is currently available for rent in the same area
as the property you are renting out. This is as easy as going onto
realestate.com.au and looking at the properties for rent.
You would want to
make sure your property is not at the high end of the current market. As you
need to think, that if it takes one or two more weeks to rent the property,
that one, or two weeks lost rent will be a lot higher than the extra rent you
are trying to get.
Keep tuned for your
next tool
Right now at RealRenta
Join now and get 50% off the normal low price:
https://mailchi.mp/realrenta/50-deal-2020
RealRenta also has a FREEvision, so why not check it out
Jason Gwerder
Monday, 13 July 2020
