This one “Fear factor” can lead to some poor decision making
A major fear for many first-time investors is having a property that isn’t rented or ending up with the tenants from hell.
Both reasonable concerns but concerns that are usually way out of proportion with reality. And concerns that can be significantly mitigated through careful planning and research.
Nonetheless it is this “known fear” that some sellers will seek to exploit which can often lead to investment in underperforming properties. Common situations include:
- Serviced apartments
- Properties with rental guarantees
- DHA properties
- Display homes
- Student accommodation
- Rental pool properties
Properties with some form a guaranteed rent are usually going to come with a premium attached either built into the price or in the ongoing fees. And in some cases the guaranteed rent is lower than what could be achieved in the open market. Or alternatively you may face a significant rent drop when the guarantee period ends. So in the end you may be paying a premium for nothing.
Proper research at the outset to determine tenant appeal of a property and realistically achievable rent and the engagement of a quality property manager whose advice you actually listen to can significantly mitigate risk and ensure you secure a quality tenant promptly.
To illustrate one of our preferred property managers secured a tenant for a clients property within 1 week and above the original estimate during the Christmas break...a traditionally slow rental period.
If you would like to talk about how you can manage this risk and have an investment property that won't hurt your budget then Click here to Book in for a FREE telephone appointment with me..
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