Like most investors will tell you, becoming successful and maintaining success requires a sequence of great habits that keep the property in check and on its way to creating great long-term growth. Below we’ve outlined what great habits can help increase your portfolio’s success.
Successful investors approach their properties like a business. Creating and implementing a business plan to establish long-term and short-term investment goals helps them visualise and focus on the big picture. Rather than seeing a big price tag, a business plan helps investors calculate the cost, payback period, and estimated return-on-investment, encouraging them take action to attract a better tenant pool and increase their returns long-term.
New Zealand’s dynamic market provides plenty of profitable opportunities for investors, but only if keeping in tune with the market. Don’t just rely on the media for information, stay ahead of the herd and keep an eye out for market updates. Understanding market trends, population growth in areas, general incomes, affordability and lifestyles enables you to understand current conditions and predict trends, creating opportunities for a prepared investor. A clear differentiation between investors with small portfolios and those with large portfolios is the amount of time each investor spends looking for new opportunities.
A simple spreadsheet keeps you on top of rent arrears, maintenance costs, endings of tenancies, helps you measure the financial success, and reminds you when the rent can next be increased, helping you become a more confident investor. Something this simple should never be forgotten about. Too often we hear about landlords who let rent arrears get out of control with thousands owed from one property largely because they didn't keep an updated spreadsheet.
The best way to avoid the Tenancy Tribunal is by understanding your rights and obligations, as well as the tenants. A successful investor should have a copy of the Residential Tenancies Act on hand as a point of reference because this Act can quickly become pricey for unprepared landlords.
A successful investor never underestimates the importance of regular inspections. Inspections are fundamental to keeping an eye on the condition of the property, and ensuring no long-term costly damage has occurred. This is why our Quinovic team always conduct property inspections every 3 months, or more frequently if required.
Maintenance is key when trying to attract reliable tenants. Even simple maintenance to freshen up the property, like a new coat of neutral-coloured paint, and updating door and cupboard handles can help keep tenants happy and increase your returns.
Successful people aren’t afraid to spend money to improve rent. Being strategic is key when investing. Spending an exorbitant amount isn't necessary to achieve this, but strategically investing into your property can be considered essential in growing returns, and attracting a more profitable, reliable tenant pool. Consider investing in a heat pump, insulation, thick curtains, or a fresh coat of paint.
Successful investors have learned to measure, modify and achieve objectives as their circumstances and investment changes. Market changes do happen, sometimes to the investor’s benefits, other times not. To make sure your financial performance is measured efficiently, keep on top of market changes and alter your objectives if need be to what your new targets should be. This can help you make better, more informed strategic decisions that can improve the long-term returns of your investment property.
Having great habits and the confidence to carry out strategic decisions based on your objectives and the market condition of the area can help improve the success of your property portfolio. Try using these tips to help grow your success as an investor.
To find out more about rental valuation, or for more general information, get in touch with us now.
Quinovic, the experts in property care and return.
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