Furnished Rental In Shepparton
Purchasing your first investment property for furnished rental in Shepparton can pose some problems without a plan of action. For a house, apartment building or other structure the marketing strategy and legal responsibilities may be different.
Is the location important and is it a bargain for the price asked?
Location can undermine a wonderful bargain if it is someplace where no one wants to live. Next to a landfill or sump may hold great promise for future income but does not provide enough promise for current investments. Locations such as Shepparton is always in high demand for furnished rental. Do I need to know how many tenants to expect to be interested?
Even with a great location and wonderful property it will go nowhere without tenants. Before you buy be sure there is enough of a market for the rentals. Is there interest in the terms offered? Will they accept monthly payment or weekly payment? Will it be costly to advertise in local papers or pay realtors to find tenants? As renters there will be more turnover that buyers and the associated cost of getting new tenants needs to be considered.
How about cost other than the purchase price and start up expenses?
As a furnished rental there is the cost of furniture and appliances. Refrigerator, stove and anything that may be mandated by laws where the property will be located.
Fuel cost for oil or gas heat may differ greatly making one heating system more profitable than the other. If the decision is to convert the system then the cost for the conversion is part of the initial investment.
Parking may be an absolute requirement in the attempt to get tenants who may want their vehicles garaged or will settle for a parking spot on the property. Street or curbside parking may not be acceptable depending on the location.
How should I determine how much rent should be charged?
To make a profit you need an idea of what you would like to clear after expenses including fuel, improvements, services or outside repair shops, ordinances that may affect the property and any other contingencies. It may be necessary to include security depending on the size and location of the property.
What about contracts and my responsibility as a landlord?
What contract or legal requirements are in the location? What are the steps for eviction or damage to property and your obligations as the owner? Investigate litigation against you for injury by a tenant and the best coverage to be in a rental agreement. What stipulations or interest charges should be in a contract for late rental payments?