Deciding to invest in property can be a huge decision that may bring you great benefits. However, if you’re not careful and make the wrong choice, it could put you in a tricky position financially. But like most things in life, it’s a gamble. Thankfully, it’s not entirely impossible to succeed with your property investment as long as you take note of these steps that I believe are important when choosing to invest on a property.
Consider What’s Suitable
The property is the most important part of your investment, and you have to make sure akk if the aspects fit your requirements. If you plan on investing on a residential property, then choose a location that is integrated well into a community. For example, if you plan on investing on a family house, then you’d want to choose a location that is close to schools and grocery stores. On the other hand, an apartment complex would best be located in a place close to public transport as your tenants would most likely be students or young professionals. If you plan to invest on a commercial property, you’d want to choose a location that would be convenient. For example, a factory would best be located away from the hustle and bustle to avoid any complaints for residents, but not too far out that deliveries would be hard to do. A restaurant, on the other hand, should be located close to the hustle and bustle because that’s where people are most of the time so that means good business for you.
Make It Look Golden
No matter what kind of property you settle on, you want to make it look golden so you attract tenants. If you go for a residential property, you shouldn’t go overboard with it. Put in some new décor and furniture to make it look modern but keep it minimal so your tenants can also add some of their wishes. Keep your designs simple and go for a simple white wall so the tenants can build from there. Adding too much of what you want and leaving little to no space might make your tenants feel less at home because there is nothing there that is them, so to say.
A commercial property, on the other hand, should be a modernized blank canvas. As much as possible, avoid decorating anything, but modernize it through your amenities, like through your internet or energy. Doing so will have higher chances of attracting business who plan to rent long-term. Do not ever present your property with damages like mold, pests, or cracked walls. This will only attract low level tenants.
Take Time with Your Tenants
It may be tempting to accept the first applicant that want to rent out your property, but don’t do it. Sure, you’ll immediately make money out of it, but what if said applicant turns out to be a horrible tenant? Take time in looking for the perfect tenant. Check their track record of rent payments. Find proof that they will be good tenants who will pay on time, whether by checking proof of employment or their credit score.
Make Sure Your Contract Covers Everything
Now this is where the tough part comes in. When drafting your contract, make sure to include every single thing you want included to avoid having a gray area situation with your tenant. If you don’t have enough experience for it, try asking for help from an estate agency or do a ton of research regarding information about contracts. Your contract should cover the basic things, like when rent should be paid, how much should be paid, and consequences when rent goes unpaid for a certain period. It should also include the dos and don’ts like pets, property care, etc. For commercial properties, it’s best to indicate who pays for the utility bills and corresponding consequence when the bills go unpaid. As a precaution, always be prepared to ask for legal help when trouble occurs with your tenants.