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Benefit of getting into Rental investment in the Cape Town Properties for sale
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Posted On :
Nov-10-2010
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Article Word Count :
516
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If you have been thinking of getting into buy for let or rental investments in the Cape Town property market some of the things that you should keep in mind are the following.
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If you have been thinking of getting into buy for let or rental investments in the Cape Town property market some of the things that you should keep in mind are the following.
Even though when invested in a good area like Clifton, Bantry Bay etc. the rental investment can generate significant income, managing a rental property can entail a host of extremely tedious tasks. These include being responsible for repairs, cleaning, painting, and other activities required to maintain and safeguard you investment.
You will be expected to schedule government agency inspections, pay property and other taxes, have a comprehensive home owner’s insurance and periodically clean the sewer. If this sounds like too much, talk to some real estate agents to take a look what kind of income rentals in the Cape Town property market can generate to make it worth while.
Of course you have the option of handing all of it over to an agency. This is great in rental investments that deal with premium Cape Town properties or luxe vacation apartments. However if you are into the middle range of things you might be giving your profit margin away and should try to do it yourself.
Managing your own first Cape Town property should be looked at as internship for becoming a landlord. While on the job you will learn ho to look after day-to-day operations, get to know the local rental scene and become experienced in appraising potential tenants faster.
Investors who already have fulltime jobs might find that they neither have the time or inclination of self managing their Cape Town property. One of the things that you must seriously figure out before getting into it is if you are the sort of person who would be a good landlord.
If you still want to invest in the Cape Town property boom there are of course professional caretakers and letting agencies who can be involved. These agencies will either take on the whole job for a fee but will usually be open to a form of job sharing if you don’t want to totally stay of from your investment. If the in flow of cash form your retail property is significant why not think of keeping a manger in situ. He can take care of daily upkeep, repairs, show the rental to prospective tenants and so forth.
This is definitely an option if you live far away.
If you have a large rental with multi unit buildings you might still prefer the agency who can take on all management duties and save you the bother of screening, collecting and if need be evicting tenants. There are various ways to figure out a payment scheme for your management agency. It can be a flat fee taken monthly, or a percentage of the rental fee. Expert suggest that a percentage based fee acts as an incentive for the agency to collect the rent timely and prevents the fee from becoming to steep in case the market crashes.
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Article Source :
http://www.articleseen.com/Article_Benefit of getting into Rental investment in the Cape Town Properties for sale_41044.aspx
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Author Resource :
Find more information relating to cape town properties, and cape town property here.
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Keywords :
cape town property, cape town properties,
Category :
Business
:
Business
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