Investing in a property is a smart move to make in these current financial times. After all, your money isn’t doing anything in savings accounts anymore, so it’s always been good advice to put your money in bricks and mortar and invest in property. You may already own your home, so other options to consider are to buy a house to rent out to people who are struggling to get onto the property ladder themselves. It could be that you want to rent out a holiday let such as an apartment or villa, or maybe just have a small flat as your first rental investment. While it all may sound very simple, there are problems even the most experienced landlord can have.
It is never going to be an easy ride when you are parting with money and to be honest, property purchases are always going to be some of the most expensive purchases you make. With that in mind, it is worth highlighting some of the problems you may face when it comes to a rental property investment.
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Finding the right place to start with
One of the first hurdles you may find is finding the right sort of rental investment. It is key to may a good decision here, as you need to think about things such as the cost to you for the mortgage and also potential rental return. After all, it is about making a profit. A good area is key and also the type of property that you go for, so consider things such as sales of hdb resale flats or apartments could be a good idea. You could also look at different rental options, perhaps a holiday apartment or villa if you are looking for a short term rental option rather than something long term. Take some time to think about the decision that you want to make and where you want this investment to be. It good be very profitable but it can also be a financial disaster if you are not careful.
Payment issues
A good tenant will always pay on time, and of course, if you have the support of an agent, then you may always be guaranteed the rent. But, there are still issues you could face if you find yourself with tenants who don’t pay their rent on time, or at all. This means that you may have to get involved in regards to bailiffs or chasing arrears of payments if you find they start to pay the agreed amount. It can be an unpleasant thing to do, as often, the tenants are not paying due to circumstance. However, you do find that you can end up with tenants that are trying their luck with messing you around.
Needing the tenants out at their end of their agreement
With all tenancy agreements, there will come to a point where the contract ends. Of course, you may have already renegotiated for a new term or agreed with your tenants the next step, but, in some cases, landlords may want to have the property vacant once more. Maybe to sell it or renovate it, or get rid of problematic tenants. However, you may find yourself in a situation where the tenant won’t move out. This is when you may need the help of property solicitors to resolve any issues. It won’t be easy with sitting tenants in your home, and they may even change the locks or cause you distress. So it is vital to have the law on your side.
Damage to the property
If you have a decent tenant, then the chances are they will take care of your property as if it was their own. Ensuring that no damage is done and that it remains, and anything you provided within the property, in good condition. But there could be times where a tenant damages the property and then leaves without any way of you contacting them to pay for the damage. In rare cases, the damage can be substantial.
Residential problems
Finally, as a landlord, you may find that you are expected to resolve any residential issues that may arise due to your tenants. They could be disruptive to neighbours, cause brawls or issues on the street, or perhaps don’t leave the property looking as good as it should be, for example, leaving rubbish on the front. There are all types of residential issues you could face with your tenants, and it can be quite hard to resolve and deal with people who have such a difference in opinion.
Let’s hope this has made you more aware of some of the problems you could face when renting out a property, however, do bear in mind that this isn’t always the case, and renting out a property can be a very worthwhile investment to have.
