One of the biggest concerns of would-be-investors are the risks of them becoming unemployed or having problem tenants who might damage their property or stop paying rent.
The answer is to ensure you are properly insured against these circumstances.
Key Point: Income Protection Insurance and Landlord Insurance are a must when you own an investment property. Don’t leave yourself exposed.
I have had one bad experience with tenants where the real estate agent had to organise an eviction and there was some property damage, but our out-of-pocket expenses were very minor and we had the property re-tenanted quickly. All of the hassle of the eviction was handled by the real estate agent.
Where I went wrong was that this was an older property where I was looking to be a bit more adventurous and later knock it down and rebuild. As such I wasn’t able to be particularly choosey about tenants — a lesson learned the hard way to keep it simple and stick with the basic plan I’ve described above. It wasn’t a great experience, but the hundreds of thousands of dollars I’ve made from property means that I am the one laughing all the way to the bank.
Valuable Resource: finding the ideal tenant
Don’t make the same mistake I made – instead download my Free Guide To Finding The Ideal Tenant from the following page on our website: