Here
are the advantages:
·Immediate
Income and cash flow
·Don’t
have to spend time, money and effort finding a tenant
·Your
investment is already relatively secure
·You
can focus on managing your property and maintaining a good professional
relationship with tenant (www.Realrenta.com.au)
Here
are the disadvantages:
·If
the existing tenants are problematic, you are stuck with them until the lease
expires
·If
you want to undertake renovation and repairs, you are subject to the conditions
of the existing lease and may have to pay compensation to the tenant, lack of
access to property etc
·You
may inherit a lease that is close to expiration or even tenants who are off
lease, which means they can vacate with no notice and leave you back at square
one, looking for tenants.
PROTECTING YOUR INVESTMENT:
·Seek
Legal Advice when checking the Lease
·Talk
to the existing Property Manager and find out about the existing tenant
·Make
sure you inspect the property beforehand
·Check
the rental yields in your location and compare them to what you are considering
·Check
if there are any other agreements in place, written and/or verbal as you may
have to honor these.
·Make
sure the bond is transferred properly so that it can be transferred to your
name on settlement
·Question how
often the property is inspected and make sure you are comfortable with the
frequency and outcomes of each inspection.
·Compare the
property condition report to your own observations.
·Investigate
the performance of the Property Manager and consider DIY Property Management withwww.realrenta.com.au it’s the same as having a professional property manager
but without the price tag.
·Do not buy an investment property
just because it has a tenant.
Jason Gwerder
Friday, 1 April 2016
