An investment rental property is a popular way to build wealth and generate passive income. Renting out a residence you own can help to cover the costs of owning an investment property while it gains value over time. While much of your wealth is gained in the long term, it’s important to ensure you’re covering costs and making the most of your investment in the short term as well. Many property investors have a hard time breaking even on a rental from year to year. Whether you’re considering renting out an existing property or buying a new investment property to rent, here are some tips on getting the most out of your rental property investment.
Know your investment property worth
It’s important to understand the value of your rental. This can be a complicated equation based on market trends, demand and opportunities. You also want to take into account your costs, such as the mortgage, utilities, rates and maintenance. You can do your research on websites like homes.co.nz, but it also pays to talk to an appraisal professional who has a deep understanding of the current market. Rotorua Rentals offers free rental appraisals to help you understand the value of your property and the unique Rotorua trends.
Get your investment property in good nick
Before you’re ready to rent, you need to ensure your property meets basic health and safety requirements. There is ever-changing legislation for rental properties, so it’s important to refer to current compliance regulations for both the health and safety of your tenant and the security of your investment. It’s also wise to invest in some modest renovations, such as fresh paint, updating the entryway or modernising a kitchen or bathroom. Not only will these make your property more attractive to potential tenants, but they will help attract tenants who are more likely to care for the property as you would.
Use professional rental management
Being a landlord can end up becoming a second full-time job. There’s a lot do in terms of finding quality tenants, collecting rent, completing inspections and organising repairs or maintenance. A professional rental property management service takes care of all this, saving you time, money and stress in the long run. Working with an experienced, high-quality team of specialists means that you can benefit from your investment without the hassle.
Talk to the experts
As local rental investment property specialists in Rotorua, the team at Rotorua Rentals can help ensure you are getting the best return on investment for your time and money. If you’d like to talk to the experts, please get in touch to arrange an appointment today.