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The ins and outs of becoming a landlord

The ins and outs of becoming a landlord

Author: Pranil Maharaj
Date: 2016-11-11

Property is, and continues to be, a sound investment vehicle, despite the current negative perceptions about the state of the country.

On the face of it, buying a property to rent in addition to your primary residence is a good route to wealth creation as you benefit from earning good returns. However, the key to investing in property is based on taking a long-term view and being aware of the many challenges along the way.

As a landlord you have to think about monthly rental collections, levies relating to the complex, insurance, utilities and the likes. Having a property manager on board would help in dealing with everyday tenant issues or queries.

People migrating from outlying areas into the larger cities tend to initially look for rental accommodation, allowing them to get to know the area first before committing to buy.Many properties situated along public transport routes are sought after because of their proximity to work, schools and shopping malls.

The most important is finding the right tenant, enlist the services of a reputable estate agency who will ensure the all the relevant credit checks and references are conducted in order to select a suitable tenant.

Furnished properties, on the other hand, usually attract tenants who require shorter-term leases. Landlords would be required to take out insurance on the contents of the home and replace any furnishings or fittings as required.