Beginner's guide to rental property investing

If you are looking for an additional income steam, real estate investments can be an excellent asset. You can invest in several ways in real estate, including owning one or more properties in Alanya to rent out. If you want to invest your money in rental properties, you should first understand how to find properties, how to purchase them and how to turn them into a profit. Here’s an introduction to investing in rental property in Alanya.

This is just a guidline for investing in rental property. Home Catcher can help you develop genuinely balanced portfolio according to your wishes, timeline and goals.

Types of rental properties in Alanya

Not all rental properties are the same, so the first thing you might want to do is to determine in what kind of property you want to invest. There are three different types of rental properties in Alanya you could add to your portfolio:

• Longterm rentals in Alanya
• Shortterm rentals in Alanya
• Turnkey rentals

A long-term rental is probably the first thing you think of when considering a rental property for investment. These are apartments, penthouses and villa’s that are rented out for a year or longer.

A short-time rental is, as the name suggests, an object to be rented out for a few months, or sometimes even a few weeks at a time. As Alanya is a populair vacation destination, you might consider renting your real estate out to tourists in week-long blocks.

Turnkey rentals are equipped with everyting you need to rent them out at the moment you buy them. They are designed to be rented out and have everything in place to generate rental income. They are furnished, equipped with whitegoods and there is a property manager in place who oversees the maintenance.

How you can make money investing in rental property

Not only do you need to know what your options are regarding the types of properties you can rent out, you also want to know how these rental properties can generate income. There are different ways to make money with rentals in Alanya:

• Cash flow
• Appreciation
• Passive income

Cash flow is the difference between the money you recieve as rent payments and the expenses for your property. For example if the expenses of your property are € 50,- per month and it generates € 450,- per month in rental income, your net cash flow is € 400,-.

Appreciation refers to how your property will increase in value over time. Real estate is an asset that generally appreciates over time, regardless of what happends in the broader market. The added value through this appreciation is realized when you sell the rental property for more than what you purchased it for.

Passive income is income you earn on autopilot. Though real estate is not necessarily a passive investment, you might want to hand out some duties related to your rental property. By choosing for a property manager like Home Catcher, you can hand off some managing duties and make your rental income more passive. This will save you a lot of time, but the trade-off is that some of your income will have to be used for paying the property manager’s fee.

How you can choose a rental property to invest in

You might have allready heard this, but with property it is all about location, location, location. Beginners should talk to an experienced local real estate agent who knows the rental market well. He or she can offer insight into the overall market, how prices are trending and how the market may develop. You can get information on the demand for rental properties in the area and the occupancy rates. This can be useful, indeed crucial, in deciding where to buy property in Alanya.

Financing the purchase of your rental property in Alanya

Once you find the perfect rental property to invest in, the next step is to purchase it. You might want to do this with cash, but if you don’t have substantial savings  to invest in a real estate object, you most likely will need financing to buy the apartment or villa.

Working with a knowledgeable real estate agent can help and he or she might be able to offer advice and recommendations as it comes to mortgage lenders who offer loans for rental property. Before taking out a loan to finance your purchase, consider what type of return you will probably realize. Factor your monthly expenses including the mortgage, maintenance and taxes and compare that to the income you expect to get from the property rent.

The pros and cons of property management

If you constantly manage the demands of being a landlord a real estate investment doesn’t have to be passive. Hiring a property manager though, can save you lots of time. The tasks you can outsource by hiring a property manager include:

• Putting the property on the market
• Advertise your property to attract rentars
• Drawing up a solid contract
• Rent collection
• Taking care of maintenance and possible repairs
• Addressing questions or complaints of your renters.

Again, you will have to pay a fee for the services of your property manager. But it may be worth it if it means your rental property income becomes more passive and it will save you lots of time. Are you interested in investing in property in Alanya? Have a look at our property for sale, or contact us for more information.