What does it take to make a property investor happy?
Jack Brukarz – CEO
So you own an investment property. What will make you happy? Some say it is capital gain while others point to snaring a bargain or securing a high yield. I believe the path to happy property ownership lies in tenant selection. As a property investor this is the key.
Whether investing in property, shares or oil futures, peace of mind plays a vital role in the decision-making process. Emotions constantly affect our lives and never more so than in decisions relating to our investments. An investor under stress is a bad investor which in turn leads to regrettable outcomes. Sometimes a property is sold simply at the wrong time because the investor has “had enough” and takes a possible loss as par for the course.
Let’s look at reality. A low quality tenant may lead to rent arrears, property damage and a host of other issues including a barrage of trivial maintenance demands. On the other hand, a good tenant may pay a little less rent (because they have an outstanding rental past) however the payment is timely, complaints are minimal and the property is well maintained. The result – a happy landlord.
My advice is keep an open mind with your investment strategy. It’s not always about the money. If your trusted property manager advises on a tenant selection, it is often best to accept that advice rather than wait for a better offer down the line.