Makings of a successful property investor

Creating wealth through property is not a spectator sport, you need to be involved. Not in every detail, and not particularly often, but there are some decisions that need your attention, and it’s at these points that you can make a successful property investor.

1. They look after their tenants

By this I don’t mean you roll out the red carpet when they arrive and pander to any request, because let’s face it, there have been some astronomically crazy requests from tenants.

You need to keep the property well maintained and act quickly when a repair comes up. Only use licensed, professionals to do the work and always check with the tenant that they are happy with the outcome.

Don’t be a landlord who fancies themselves as a handyman (unless you actually are) and insist on doing all the repairs yourself.

2. Ruthless with tenant selection

The people you approve for your property can make or break a tenancy.

It’s the responsibility of your property manager, if you are using one, to thoroughly vet each applicant and present you with their recommendation. All checks, professional and personal must be done with a full financial affordability report.

Having said that, it’s ultimately the investors decision, so take some time to review the information and if something doesn’t stack up, ask questions.

3. Prioritise effective marketing

Getting the best tenant for the best possible rent is a top priority for any great property manager but this is really hard to do when investors don’t see value in paying for marketing.

Targeted, professional marketing creates competition, and that will help achieve the best rent, plus provide you with the highest quality pool of tenants to choose from.

Your property should be professionally photographed, presented well at open homes and displayed on all the real estate portals and social media.

4. Focus on the asset

You invest in property to make money, this may seem obvious but so many investors get caught up in the ‘great Australian dream’ of property ownership, they forget it’s all about the numbers.

Do annual reviews on your property’s yield and capital growth to understand how it is tracking.

There could be small, inexpensive updates you can make to your property to increase the rent and overall capital growth. You may be able to do a stint of short-term lettings to boost your rental income.

However, if your asset is underperforming then it could be time to sell, there is no point hanging onto a property for sentimental reason when it’s not making you money.

So, get involved, surround yourself with a brilliant team and kick some property goals.

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This article via Smart Property Investment does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.