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Maximising Your Property Investments: 4 Approaches to Bear in Mind

If you are looking to get onto the property market, there are so many different stories of those who gain vast profits, but also of others who walk away with very little at the end of it. When it comes to property investment, it’s got to be something that serves your lifestyle and has to be something that you are savvy about. It can be very lucrative but can also be very risky, so let’s show you some ways to maximise your property investment.

Look After It

Whether you want to be a landlord or you are living in the property so you can flip it and sell it on, it is critical to maintain it because you can get a better investment. Those that become landlords find it very overwhelming, especially when they end up with nightmare tenants who don’t pay rent or greatly underestimate what it takes to be a landlord. But there are plenty of solutions out there. If you’re looking for support with looking after your property, The Property Edge property management company is one of many resources that can help you look after your investment. Looking after it is not just about keeping it clean and tidy, but it’s about ensuring that you truly invest in the things that make that house a solid and stable foundation, literally.

Don’t Aim Too High Too Soon

Lots of people think that the bigger the property they invest in, the better, but this is when they end up investing in a so-called money pit. When it comes to investing, not just in property but in terms of anything, you’ve always got to make the safe bets so you can gain a good return. This is why you should go for smaller properties rather than those complete fitted outs or multi-home developments. Even when you go for the big hitters, you’ve got to have a roster of reliable tradespeople so you can get honest advice.

Diversify That Portfolio

Risk is part and parcel of any investment, and when it comes to maximising your return and diversifying your risk, you need to look at the low hanging fruit. For example, your basic apartments or flats, but there will come a time when you need to diversify that portfolio with different types of properties, from houses to student properties, across a wide area, should be part of your long-term goals.

Always Know Your Budget

If you are not good at numbers, you will need to get an accountant to help you. You’ve got to budget for every single thing you need to spend on, from materials to legal fees and everything you can think of, right down to the cost of that doormat. Also, when it comes to investing in properties, lots of people follow their heart at auctions, but this can be a very dangerous thing because while there are many investment opportunities available at auctions, you’ve got to ensure that you don’t bid over the odds for something that will crumble in a matter of years, if not months!

A Useful Guide to Apartment Hunting in Lisbon

In Lisbon, it is best to schedule your search for the best short-term rentals in Lisbon for certain parts of the year. It is a seasonal activity because social factors have an impact on the availability of certain properties.

For example, there may be plenty of openings in the summer. However, competition will be a little stiff because you will be hunting alongside students going back to school and tourists hoping to spend some time in the city. If you cannot postpone your apartment hunting, make sure you follow the market with a sharp eye during this time of year.

The winter months are usually the best time to start looking for a place to stay. This is because the city is quieter, and many leases end around the New Year. As a result, you have more options and less competition. This could also translate to more affordable prices, as homeowners and landlords are more willing to negotiate.

Starting With Listings

Lisbon has plenty of furnished and unfurnished apartments you can choose from. It is strongly recommended that you try looking into furnished apartments in the city first, because these properties will have all the amenities you need to live comfortably. In addition, many rentals include the utility bills when calculating monthly rent.

If you want to push through with renting unfurnished apartments, you will be responsible for setting up all your utilities and buying your furniture.

Making Your Offer

Now that you know where you want to stay, you need to submit your offer. If you are from the United States, you may be used to signing on rental apartments immediately. However, this is not the case in Portugal. Prepare for listing agents to draw out the process, allowing for as many different visitations as possible. There have been instances where landlords decide to increase an apartment’s asking price based solely on the number of viewing inquiries made in the past few days.

Expatriates may go through double the stress when apartment hunting because landlords are likely to favour a Portuguese national. This could be out of a desire to help their own people and the familiarity of local renters. To gain a competitive edge, prepare an initial offer with a hefty guarantee. You could try offering to pay for three or four months’ worth of rent in advance. Landlords also favour potential tenants who want a longer contract.

Choosing Your Ideal Neighbourhood

Here are some of the most prominent neighbourhoods in Lisbon:

Alfama

This is the oldest neighbourhood in Lisbon. Alfama has tons of picturesque places around the area and some of the best views of the city. It is home to plenty of elderly people who have lived in the neighbourhood for decades. Young professionals and families have also settled down here.

Alfama is located on a hilltop, which means that you will need to prepare for plenty of walking up steep streets. This is not an ideal neighbourhood for car owners because the roads are so narrow.

Baixa

Baixa is a neighbourhood with one of the highest footfall rates in the city. It is located in the heart of Lisbon, with plenty of eighteenth-century architecture and allure to keep you coming back for more. For people who need to commute, transportation is not a problem. There are plenty of tram spots, metro stations, and buses around the area.

If you want to stay in a vibrant neighbourhood where you can see plenty of tourists and youths alike, then Baixa is where you should start looking for a place to stay.

Cascais

In the past, Cascais was a fishermen’s village. Today, it is a coastal town where many people choose to live because of the breath-taking bays, golden beaches, and proximity to luxury hotels. This is only a thirty-minute commute away from the Lisbon city proper. It has plenty of seafood markets, local shops, and local restaurants for people who want a uniquely Portuguese experience.

One thing to keep in mind is that Cascais is one of the more expensive neighbourhoods. Adjust your budget accordingly.

Principe Real

Here’s a hip and trendy neighbourhood with something to offer for everybody. Principe Real is one of the most in-demand areas in Lisbon. If you want to rent an apartment here, then you need to have a sharp eye out for changes in the market.

Principe Real has plenty of nineteenth-century buildings and a variety of green spaces scattered around the area. It has a strong multicultural community, which shows in the diversity of restaurants and shops.

Sintra

Sintra is only a 30-minute train ride away from Lisbon. Its mountainside is a UNESCO World Heritage Site, and this neighbourhood has plenty of natural scenic spots for those who want to be closer to the environment.

Sintra does not have as many tourists as Cascais and it is also slightly more affordable.

6 Useful Facts Every Good Landlord Should Know

A landlord is the owner of a house, apartment, condominium, land, or real estate which is rented or leased to an individual or business, who is called a tenant. When a juristic person is in this position, the term landlord is used. Other terms include lessor and owner.

There are many things people can invest in, be it wines, jewellery or paintings. Folk can also get involved with the stock markets or multiple property ownership. One thing’s for sure: it pays to know what you’re doing in advance.

It may be tempting to assume that all landlords do is receive monthly rent checks. A chat with a landlord would quickly rectify this misunderstanding, however. There are multiple responsibilities and landlords need to be a ‘jack of all trades’ in order to do their jobs.

If you read this article you’ll learn about six key facts every landlord should fully know.

You Need To Get The Finances Right

This applies each time a new property is considered. It’s important to do the maths and decide if it’s worth the investment. Think about the rents and involve an accountant in all your financial decisions.

In some cases, investors can afford to buy outright for cash. In many others, however, a mortgage will be required. For more information on this subject, it’s advisable to consult the internet. Should you visit largemortgageloans.com you’ll see that there are three types from which to choose: commercial buy-to-let, residential buy-to-let, and owner-occupied mortgages. Many landlords go online to discover what they can use as security for a commercial mortgage and learn about the benefits of having one.

You are well-advised to consult a reputable lender who can offer favourable rates. The price of property insurance is another expense you will need to factor into the calculations.

You Need To Wear Plenty Of Hats

We have just discussed the need to understand all things financial, as well as having property knowledge. There may be out-of-hours responsibilities too, such as tenants with plumbing issues or manual rent collections. When building work occurs it’s necessary to be a communicator with external companies and contractors. Sites may need to be visited regularly to check the work from a practical and legal angle.

Before investors buy homes they need to have an understanding of the property markets. This would include knowing the local area and being aware of e.g. unemployment issues or future developments that could affect their worth. When so many landlord roles are required, it’s not hard to see why they are so often delegated to others. People may appoint an accountant or rental company, debt collector, or maintenance overseer.

There Are Many Legal Responsibilities

If they are not met, external auditors could fine you – whether it relates to tax or safety. Landlords need to be aware of local and national legislation, zoning laws, and building regulations. It’s important to ensure the smoke detectors are fully working and that the emergency doors and windows are also functional. All plumbing and wiring should be certified safe and compliant.

One way to ensure you cover all the bases is by appointing a residential attorney. They would be able to use their experience and knowledge to keep you up to date. Help can also be received for preparing new leases and dealing with evictions.

Maintenance Is Not Optional

Any new tenant will require a warrant of habitability, certifying their new abode to be safe. You may have the responsibility to pay grounds people to care for the communal areas. Workers would be needed to deal with a range of tenant issues, from leaks and dampness to broken windows or appliances. Besides basic handyman jobs, there could be the need for professional plumbers and electricians.

It’s obvious that landlords want to attract and keep quality tenants who are faithful payers. If the properties look nice and are well-maintained this will help, and so will prompt attention to repairs. If you own an apartment block it’s wise to aim for consistency in appearance, and to use the time between tenants to upgrade the flats. Should damp issues be reported, it’s in your interests as well as the tenant’s that action is quickly taken.

You Need To Know Your Tenants

Everyone is different and will have different needs, whether it’s the number of bedrooms or the view. Accessibility is especially important for those with disabilities. If someone has an Emotional Support Animal (EMA) you’ll need to fully understand the person’s rights. Even if you have a ‘no pets’ policy you will be unable to refuse accommodation to someone on that basis.

The Fair Housing Act exists to protect people from discrimination in a number of categories. They include race, religion, national origin or ethnicity, or age. Added to that are gender and family status or people with mental or physical disabilities.

You Need To Understand The Tenancy Process

There are a number of options for you in regards to advertising vacant rooms and houses. You could use local adverts, notes in stores, or specialist websites.

New Tenants

Involve an attorney when someone applies to become a resident so that everything is done efficiently. Credit checks are a key part of the process, making sure the enquirer is not in debt or likely to be a bad payer. If someone was previously bankrupt this should also ring warning bells. Peoples’ references are important too. It’s wise to check the people who have supplied them, as they are vouching for your potential tenant’s character.

When the new tenant moves in, they need to be shown everything about their accommodation. Let them know their responsibilities and what they should do if there are any issues. Be sure to set up the rental payment arrangement too.

Eviction

There are certain circumstances where you can do this, and a legal procedure exists for it. Let your attorney include the various scenarios in the rental agreement, whether it’s non-payment, noise, and behaviour, or property damage. Both tenant notices and home inspections form part of the legal process.

It has now become clear that being a landlord requires an all-rounder from start to finish. They need wisdom in choosing and developing properties, overseeing the financial and legal aspects, and addressing ongoing tenant issues. In return, a stable income is often achieved, and profit may be made on the increased value of the properties too.