What makes a good rental property?

Posted by Andrew Nicol on 01/08/16

Much debate often exists around what makes the ideal rental property. Some campaign for the high yielding classic Kiwi house, while others vouch for the road less traveled and go for the new high-quality modern property.

So what exactly does the perfect property investment entail?

Modern, if not new buildings either commercial or residential, have a definitive shelf life or at least one that exists for a period until the maintenance catches up. It’s important to ensure you invest at the front of their life cycle for ease of ownership.

You need to pick your location carefully when deciding where you invest. Is it going places or is it on the decline? Remember you don’t have to buy in the absolute best area but make sure the area is popular and going ahead.

Every property goes up in value overtime but it’s a long road if the property is consistently vacant. Tenants are an important factor and you need to make sure it’s usable for the demographic you are targeting. Generally, it comes down to space: will tenants find enough living, bathroom, garage space? Property Management will make or break the investing experience. You need to manage the tenants wisely.

It's important to remember that an investment is about compromise and stretching the dollar where possible so you need to decide carefully about what previsions to make to the property. Investing is a balance. For help with what we call the equation call OPES today.