Investing in your first rental property is an exciting time! Can you imagine? You’re getting the opportunity to have someone else rent your property, thereby paying off most of your bond, AND you’re still getting an entire property that will still belong to you afterward. That’s a win-win situation.
There are a few things that first-time rental property owners need to know about. These aren’t scary things or anything to get nervous about – it’s just things that you need to be aware of.
Here are five great tips for new property owners in the Toronto area – they will come in handy, so print this out and keep it safe.
Organization Is Key
Staying organized might sound like an unimportant waste of time. You’ll remember all the important stuff, right? Wrong! Please don’t rely on your memory or little scraps of paper with scribbles on them as a filing system. Instead, start on the right path – get a system going.
Property owners have to deal with a ton of paperwork, so make sure you have somewhere neat and organized to keep all of your important documents.
Communication Is Necessary
Make communication a priority. Property owners will be in contact with several people over the years, from workers and contractors fixing things to tenants, and ultimately property managers, when they realize that they are out of their depth.
Make sure that the necessary people can always get hold of you. That will save you both time and money in the long run.
Hire Property Managers
As much as they will initially seem like an unnecessary expense, property management teams are crucial in the upkeep and admin aspects of owning properties. For apartment property management in Toronto, GTA – consider hiring one of the best teams for the job.
Property managers save you time and money by managing your investment properties for you – no more nightmare tenants and smooth management from here on out.
It’s all fine and well having a diversified investment portfolio, who doesn’t get it these days? The main point of having an investment is that you have a strategy to go with it. You need to take some time and figure out what your plan of action is and what return you want to see on your investments.
Doing upgrades to your properties will cost you money, but they will also help you attract better tenants and charge higher rentals. Be savvy about the upgrades that you choose – you don’t want to be left out of pocket.
Location And Demand
Lastly, it would be wise for you to keep an eye on the performance of the area where your property is located. The point of an investment is to make you money and not just for you to break even.
If the location starts dropping from an increase in crime, you need to have an exit strategy. Learn to recognize the warning signs of an area before you lose money. Rather than dealing with a bad investment, sell early and invest in property somewhere else.