Professionals Richmond As a Property Manager who looks after many properties, I am struck by the difference in the way that the ‘more experienced’ property investors approach their investment. Their approach is often measurably different to newer property investors.
Our “More Experienced” Investors pass on their thoughts for those about to enter the property investment market……
- “Treat your property like a business, understand the risk and insure against it eg: landlord insurance.”
- “Have an understanding of the rules (ie: consumer legislation) that effect renting your property. “
- “Believe in the value of good property maintenance and be prepared to invest in it.”
- “Maintain a healthy level of cash reserves to pay for unforeseen costs.” Although they understand the principles of leverage, experienced property investors tend to prefer higher levels of equity in each property than newer investors.
- “Consider your tenants as your client and therefore deserve your respect. Accept that the financial transaction is with people who may not be perfect.”
- “Treat your property manager as a work colleague and try not to micromanage.”
- “Understand that the best property management service is efficient, not necessarily glamorous.”
We have certainly learnt a lot and enjoyed listening to the journey of many experienced property investors we have met. A consistent comment is that they have matured since they started investing. Their experience has taught them a certain way of looking at property investment and the difference in their approach to the newer investors is quite obvious.