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Originally Posted by Rui
Kristian - your rules seem to be a bit harsh no?
Also what is the percentage of income that goes to the real estate agents taking care of everything basicly?
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In the UK I believe the standard % is 10% for fully-managed, but I've never sacrificed that much.
Harsh, but its a landlord's market, and around here the most profitable demographic are single or married professionals; in other areas, the most profit might be with students or families. It just makes life much easier when tennants leave a prop as they found it. And kids or pets, or yellow stains from cig smoke, just mean I have to pay for a clean up crew...and Im cheap.
I dont know where you live, but I have a mate who lives in a tourist spot up in north wales. He rents out vacation props. This is great if you have a mostly year-round vacation spot. For instance, he rents this house in llandudno at £600 per week. Ordinarily, on a 6 or 12 month lease, it'd only fetch that much per month, maybe less. The work there, I suppose, is in keeping it full as much as possible, maybe working with a tour operator. Another idea for you to consider though.
It really all depends on your budget, opportunity costs, and the local demographic. A good way to start is to visit some local realtors. Find out whats most popular. Ask the realtor for a checklist of things that add value to props and also which are the best areas. They're always helpful cos they will likely make money from you in a few months.