Stress number 1: experienced investors have already taken all the good deals
Finding the right property takes time, and it can lead to a fear of investing. Estimating all the expenses, potential income, finding the time to see the property, envisioning renovations… and then how to convince the seller to accept the offer from a novice when they can sell to someone experienced? All these questions are legitimate. The solution is simple: find someone who will take care of all the steps of your rental investment. Check out our investment offers
Stress n°2: will I easily find a tenant?
A question that every novice investor asks is, will the property be rented easily? This is one of the biggest fears in investing: rental vacancies. But the answer is simple: if you choose the right place, this will not be a problem. In furnished rentals, you have 30 days to find a replacement tenant. In most major French cities, it takes much less time than that to find a new tenant! This does not prevent many owners from entrusting the rental process to an agency. Expect around half a month's rent for agency fees for each rental.
Stress no. 3: how to manage the work?
Don't you know anyone to do the work? The craftsman your mom recommends doesn't have your rigor and doesn't reassure you? That's normal, we all go through that! It shouldn't be a fear to invest. You have 2 solutions: conduct "interviews" with numerous contractors to get a quote and find the rare gem, or entrust the management of the work to a trusted partner.
Stress number 4: how to manage my apartment once it is rented out?
Receiving a late-night call from your tenant about a water leak when you know nothing about plumbing can be a nightmare. Just like a co-owner who complains about a hole in their wall that you caused, or a tenant who refuses to pay their rent… The examples of unforeseen complications are numerous, and managing these uncertainties represents a fear of stepping into investment.
That is why many property owners choose to entrust rental management to experts who will not be intimidated and will filter the information you really need to know! Expect to pay between 3% and 5% of your rent in fees. The price of peace of mind!
Stress number 5: what if my apartment loses value?
Remember that rental investment is magical: no matter the resale price of your property, what matters is the profitability of your investment. And this does not take into account the resale price of the property! So this reason does not count as a fear of investing!
For reference, the calculation of net profitability:Net profitability = (Rent excluding charges * 12 - property tax) / (Price of the property + Agency fees + Notary fees + renovation)
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