Rental Property – An Insight

Of the many different commodities that one can invest in, real estate is at the top of the tree, regarding minimum risk; property never goes down in price, it is merely a question of by how much the price of real estate will rise in a given period. The amount of land on the planet is finite, countries don’t just appear, indeed, global warming is causing land to be reclaimed by the sea, meaning the supply of land is decreasing. The demand, on the other hand, is rising, as the global population nears a staggering 9 billion (that’s 9,000 million), which is one good reason to invest your wealth in property.

Why rentals?

A good question and one that is answered with a regular income’; your tenants are basically paying the loan you took out to buy and renovate the property, which sounds like a pretty good business arrangement to us! Of course, as a rental property owner, you have a lot of liabilities; the property must be in good order and any minor repairs must be promptly carried out. Tenants have rights and most rental property investors use property investor services that handle all the processes on behalf of the client.

This would include:

  • Tenant advertising and screening
  • Receiving rental payments
  • Building maintenance
  • Property security
  • Landlord/tenant issues

For a small fee, the property management company manages your rental properties; they even have a legal department to advise you regarding issues.

Initial investment

The first thing to do is find a suitable property; it is a good idea to acquire a rundown property and renovate, as this would save money. Of course, location is everything with a rental property and with a fully furnished set-up, you can charge top rent. Crunch the numbers to find out the total cost, then balance that with the expected monthly rental and that tells you what you need to know. You might want to consider epoxy flooring, which is both durable and attractive.

Legal liabilities

This scares off a few investors; when you rent out property, you are the landlord and consequently, you have legal liabilities and responsibilities to your tenant. This is where a good property management company comes into play; they deal with all tenant issues and you receive regular reports, while minor repairs are carried out and you are billed accordingly. Anything major requires your approval, of course, and you can expect to make renovations every couple of years, to keep the property in good order.


The government always wants its share and you need an experienced property management lawyer, which the property management provider happens to have. The way you structure the business affects the tax due and with expert guidance, your taxes will be minimal.

Partner up with a local builder

Either that or use the services of the property management company; you will need to get the house up to scratch before you can list it. Regarding furnished or unfurnished, the former offers more in terms of a return when renting out properties.


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