If you’re planning to get into the rental market to avoid working for life, then you should first know that indeed, the rental market is the best way to avoid working. If you become successful enough, you can make your entire living from passive income, and most importantly, your taxes will be almost non-existent. However, the problem is that being successful in the rental market is not as easy as you would expect it to be – and if anything, renting properties has its share of disadvantages. Not only will you unnecessarily be excessively reliant on the real estate market and market values, but you can always never be sure of your tenants and the monthly rents.
However, if you still wish to go ahead and dive into this market, then here are four helpful tips to get started out in this field of line:
• Start simple – you won’t be able to earn your living from just renting properties at the start, and neither should you be overly ambitious to expect such a thing. You will have to start by renting out a simple and small property with low risk; with time, you can expand your horizons – you can start buying dilapidated residences and renovate them, or acquire more properties and hire rental managers Lower Hutt to look after them, but know that you won’t be able to all this in the beginning. Just like with any other profession, you will have to start from square one and gradually make your way up.
• Look for rental properties in areas of potential interest – first of all, what are areas of potential interest? Simply put, they are areas where tenants are likely to look for properties to rent in Wellington – residences close to schools make them ideal for students, for example. Other similar areas would be those close to the city centre, or those close to malls, transport, etc. Try to look for potential lands and properties to buy in similar areas.
• Think about who will be your tenants – going together with the aforementioned point is the question of your potential demographic target. For example, if your property is close to a school or university, you will naturally have to expect students as tenants. Once you realize who your potential tenants will be, you can start adjusting your property to accommodate for them – for example, parents of students will appreciate if the landlord lives in the properties together (or at least, another responsible adult such as a manager).
• Renovate the kitchen and the bathrooms! – A very important step that can increase the amount of rent tenants will be willing to pay when staying in your properties is the renovation of the bathrooms and the kitchen. Being two fundamental components of any residence – and not to add, frequently used and easily dirtied or worn down – the kitchen and the bathrooms are better off if they are renovated when you acquire a new property.