Property Investment Tips: What your investment property isn't

By the resi financial blog team, 28 November 2014

Property Investment Tips: What your investment property isn't

If you've taken out a home loan and bought your first investment property, make sure you check your emotions at the door - this is not the house you're going to live in. When you're investing in residential real estate, it's very much like investing in any other business. Surround yourself with good professionals and conduct yourself in a business-like manner to make the most of your rental portfolio.

The tenant is not your mate

Of course it doesn't hurt to have a good relationship with your tenant. In certain situations it can be very helpful, as it will make them feel more inclined to protect your investment by respecting your property.

However, getting too chummy with a tenant can make it difficult to make the hard calls. Imagine telling your best friend they need to clean up their house or you'll be forced to kick them out - you couldn't do it! Don't get yourself into a position where it is hard to conduct rent reviews or property inspections because you have become too close to the tenant.

The house is not your project

Sinking money into a rental is exactly that - sinking money. Of course there are exceptions and genuine maintenance will keep your tenant happy as well as helping to keep long term costs down.

However, going over every other weekend to paint something or work on the garden will not only waste your time and money on a house you won't get to personally enjoy, it will also prompt the tenant to feel less at home.

Make sure when you make decisions around your investment property that they make good business sense - talk to a resi loan specialist today to ensure your home loan is in tip top condition for a start.

Categories: Home Loans, Property Investment