05 Dec 2011Blog

5 tips that support rental property investors in the current market

by Monique

5 tips that support rental property investors in the current market Are you interested in purchasing property in Barbados as a rental investment? We completed some research and also recently asked our real estate agents in Barbados what they thought would be the most useful information for a property investor to know prior to signing the sales/purchase contract!

5 tips for rental property investors

Here’s a list of the top 5 tips that we think an investor interested in the rental property market should consider:

  1. Research all property investment options to weigh which is best for you. For example, you may prefer a long term rental home, commercial building or a holiday rental.
  2. Choose your advisor carefully. Research which professional you would like to gain advice from. Speak to a neutral body to gain recommendations on which company is best suited in the property investment area and who will put your interests first rather than their bank accounts.
  3. Location. Consider the area where you are buying. Certain areas are better suited for certain types of rental revenue.
  4. Financing. Be sure to put pen to paper and go through your finances. Speak to a financial advisor and ensure you have cash flow necessary for the off peak season or short vacancy spell that may occur in between long term renters. If you are taking out a mortgage, this step is critical to ensure you are covered.
  5. Maintenance. Be sure to formulate a team of professionals who you can rely on to maintain your property; i.e a plumber, an electrician, gardener, housekeeper and handy man to name a few. There are many smaller guys who do a great job so ask around and complete your due diligence before confirming a team. If you prefer to have one point of contact, you could always look into hiring a property manager.

Here is what some of the real estate agents advise:

A good point to note is to make sure the property can be easily rented either for short or long term rentals.

Junior Sparks
Global Estate Agency Inc.

I would say they need to consider location. I.e close to beach for short term and long term needs to be near a business hub in a gated community or close to schools as this attracts the business renter and their family.

Swimming pool is a must to get top dollar from villa purchases. Lastley good decor as often this is the only difference between apartments or properties that are similiar.

Paul Alleyne
Alleyne Real Estate

Location, Location, Location. Revenue increases with location desirability.
Maintenance – rental property needs to be low maintenance to stay looking good. Time spent renovating is time lost to rental.
Larger properties of 4+ bedrooms are in short supply.
Small inexpensive rental properties are in short supply.
Excellent finishes help rent a property quicker.

Caroline Robinson
Ron Karp Realty

Are you already a property investor in the Barbados rental market? We would love to hear what you think are the most important tips for our readers who may be considering buying property in Barbados as a rental investment.