Buy-to-let property investments are, in many ways, the simplest way of earning passive income. Once you’ve bought a property, you rent it out to tenants and get monthly payments. If you play your cards right, you don’t have to do anything and the money keeps coming in, growing your wealth exponentially. From here, you can make more property investments to generate more rental income!
Those of you that are ready to start a buy-to-let venture must learn how to make it successful. We’ve listed three essential things that all property investors must have in their lockers when they embark on a rental investment like this.
A Property Manager
When you rent out a property, you become a landlord. This can mean you have lots of different tasks designed around maintaining the property and responding to tenants. It’s not a lot of work, but it can still be annoying.
Instead, you should get a property manager on board to deal with this for you. The ideal approach is to hire a property management company. Why? Because they’ll have connections with other key service providers you will need – like repair contractors, a licensed level 2 electrician, authorized plumbers, and so on. Whenever there are issues with the property, the firm will handle them on your behalf. They may give you a quick call or email, but you don’t have to do any work.
It ensures your income is truly passive while also maintaining your property better than you could alone. This leads to happier tenants who always get their queries dealt with, meaning they’re more likely to stick around for ages.
A Reliable Tenant
Speaking of tenants, you need them to be as reliable as possible. What does this mean? Effectively, these are the key traits of reliable tenants:
- They make rent payments every month, on time
- They look after your property
- They’re interested in staying in the property for the long term
These traits leave you with someone that always generates money and won’t leave your property with costly maintenance repairs. As such, it’s vital that you go through a thorough tenant vetting process before handing someone the keys. Be 100% certain that this person (or these people) is reliable. This is how you consistently generate income without losing money.
A Good Heart
Having a good heart and a strong sense of morals is important. Landlords have a tendency to not care about their tenants. You can hike up the rent every year with no regard for what it means to the tenants. In a lot of cases, you’ll end up forcing them out, leaving you with an empty property.
Investors should aim to avoid empty properties as they waste money. You still need to maintain them, plus pay to advertise them. At the same time, no rent comes in – and this can go on for weeks or months. Having a good heart means you’re aware of tenants’ situations and don’t hike the price for no reason. Be a good person and tenants will want to stay around, which helps you generate long-term wealth.
If you’re starting a buy-to-let investment journey, be sure you have all three of these things at your disposal. They’ll help you make more money without dealing with long periods where nobody is paying rent.