Return On Investment - Property Investing
Today I want to talk to you about return on your investment.
To most people to return on your investment means sitting down at your desk before you buy it, to work out all your numbers. And then working out what your costs are, but the real return on your investment is the money you get each month. Making sure you get your money.
A lot of people give this into the hands of a letting agent.
Which is fine as long as you've done your due diligence, and you know that the letting agent;
- Belongs to a known site body like ARLA (Association Residential Letting Agents) NALS (The National Approved Letting Scheme) or RICS (Royal Institute Of Chartered Surveyors)
- Have a client money account
- They have client money protection and they belong to a property ombudsman scheme.
Now if they haven't got all of those, I wouldn't bother with them. Because you've been able to get those accounts set up and working for years now.
I know the Government's trying to bring it in, and it will be enforced by 2021.
My question always is; Why didn't they?
So that's the first thing;
Making sure your rent comes in every month.
Make sure you get paid on time.
If your rent comes in every month from your tenant on the 1st of the month, within 24 hours and it being cleared funds, I would expect in my account. And that's what you should expect.
The other thing you should be looking at as well, if you are using an agent, how good is their referencing system?
I don't mean how expensive they charge. What I mean is do they just farm it out and get an answer back, or do they go a little bit further?
Do they check the employment?
Do they ask for wage receipts?
Do they want to see bank accounts?
Are you thinking why a bank account?
How much money do you think they've got left each month, at the end of each month?
Do you know?
Do you look to see that they got ￡1500 a month coming in, but are spending 1700?
Just because their wages are big, doesn't mean they've got a lot of money left.
Always double check.
If you do that your return on investment will start coming in.
This is David Connect Property - keeping you safe!