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Purchasing an investment property is often seen as an easy way to make money, but this isn’t always the case. There are many risks associated with the process of buying and renting out a property, no matter whether it’s commercial or residential, and it’s important that you can acknowledge these dangers in order to avoid them. Luckily, it needn’t be difficult to reduce the risks associated with your investment property, as there are several simple tips and tricks that you can make the most of to ensure you can generate a stress-free income for years to come. So, if you would like to find out more, then read on to uncover some of the best steps that you can follow today!
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Seek Quality Tenants
One of the most important aspects of a successful investment property is a quality tenant, as you must take the time to find a reliable tenant that isn’t going to cause you any trouble. Finding tenants is easy, as you can post your own advert on one of the many renting platforms online or contact an estate agent that will market your property and find a tenant themselves. Utilising an estate agent will give you the opportunity to ask for proof that the tenant is able to keep up with the monthly fee, whether this is through bank statements or positive references from previous landlords. Finding a tenant that has a proven track record of paying on time every month will give you the peace of mind you need to sign the contract, and it’s likely that such a tenant will also take good care of your property throughout their stay as respect spans far and wide. If you find a reliable tenant that shows their commitment to upholding the contract you both agreed upon, you may wish to offer them more attractive terms to continue their lease after the contract has finished.
Protect Your Assets
It’s absolutely vital that you can take the time to protect your assets when renting out a property, as all manner of issues could affect your position if you don’t have the right cover. Your first priority should be some kind of landlord insurance from a specialist provider such as The Insurance Octopus that covers any kind of damage, as anything could happen inside your property when your back is turned. The worst-case scenario would be something such as a flood or fire taking place inside your property when you don’t have insurance, as you will have to pay many thousands in repair work to bring it back to a good standard. You should also take your contract as an opportunity to protect your assets, as you can list any rules or guidelines for your property that can help to maintain the building for as long as possible. The contract must then be signed by your tenant, therefore turning it into a legal document that could be utilised in a court setting should any issues occur.
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