When you are considering how to make some extra money as a side hustle, the world of property first springs to mind. The sphere of bricks and mortar has often been tapped by amateur investors keen to top up their retirement funds. If you are eager to get yourself a second property, you need to consider how you will make money from it.
With the coronavirus pandemic still ensuing, flipping a pad has become more difficult. Instead, you need to consider renting your dwelling over the long term. Take a look at these three essentials you need to consider for your new rental pad.
The most essential aspect of your new rental home is budget. Don’t buy the best house on the best street to let out to tenants. There is little room to maneuver when trying to outperform the market. Instead, consider heading to a property auction and look into buying the worst house on the best street. This way, you can undertake a scheme of works that will give you an asset that is worth more than what you have spent on it. Then, you can let out this pad to tenants for an amount that will cover your home loan repayment every month and leave you some extra readies to siphon away. Always buy in a well established area and don’t risk an up and coming area. It may remain up and coming forever.
It’s crucial that you can keep your second property secure when tenants are present and when the pad is unoccupied. Invest in a home security system that utilizes CCTV technology and an alarm. Ros Electric specializes in installing these systems in domestic settings. You can visit their site to see how they can help you design your system and help you choose the most appropriate alarm for your pad. You also need to deter any would-be burglars with lighting. By having a sensor light that shines brightly at night when it detects movement, any potential burglar will run a mile.
When undertaking the scheme of works for your new rental pad, don’t allow your heart to rule your head. The moment you do this, your dwelling can become a money pit. You don’t want to be spending more on the decor and purchase price than what your asset is actually worth. The decor you choose shouldn’t be too expensive or garish. You might like the bold red gloss kitchen units but this is hugely subjective. Instead, keep things plan and more cost effective. Go for a clean white bathroom suite, a simple DIY store bought kitchen, and off white walls. Boring? Maybe, but this is the decor that will secure you excellent tenants. A granite quartz kitchen worktop might be ideal for your own home, but for your rental pad, an infinitely cheaper manmade laminate is much more apt.
Follow this guide and you can ensure that you have the best start when launching your side hustle as a property investor.