I’ve recently begun the transition from owner to investor – I’m moving out of my home and renting it out, so I’m embarking on my first experience as a real life investor. Despite being armed with a wealth of knowledge about property investing, I’m a little overwhelmed.
BY VANESSA DE GROOT
My first move has been to find property managers and my experiences there have been a mixed bag so far. Some have instilled confidence in me – they’re professional, they offer to send me information and they’ll work around my schedule to organise a meeting time. That’s the sort of manager I want.
On the other hand, others have been disinterested over the phone, unable to lock down a time for an appointment and don’t offer up any information. That’s not the sort of manager I want.
These first impressions are good really, because I’m already getting a feel for the type of person that I want to be in charge of my property. But I’m not sure it’s going to be easy to choose one.
Having made appointments with these managers, now there are so many other things I need to ponder for these meetings and in my final decision.
How much do I want to pay? Is it best to go with a big company in the suburb my property is in because they might have access to a large number of potential tenants, or should I go with a boutique company that
might be located elsewhere but work in the area because they might provide better service? Will they treat the tenants well, as well as looking after my interests?
I’ll take it one step at a time, but the list of things to do just goes on and on: fix things that are broken (that I’ve lived with but a tenant couldn’t), organise a valuation and depreciation schedule, get landlord’s insurance, switch my loan from principal and interest to interest-only and make sure the property looks good; presentation is an important factor when finding a tenant.
While all this might seem a little overwhelming, I’m excited too – I’m confident this property is a good investment and the work involved is definitely going to be worth it.
I’m already thinking about buying my next investment property – and next time, with some experience under my belt, I’m sure it’ll be easier.
Tell us what your first experience as an investor was like. Was it daunting? Was it confusing? Was the most important thing you learnt during the process?
Vanessa De Groot is the deputy editor of Australian Property Investor magazine, www.apimagazine.com.au