According to Adrián José Velasquez Figueroa, purchasing property to rent is a time-consuming and challenging endeavor thus should never be termed as a passive investment. In his opinion, for investors to maximize their income through rental property in Panama, they need to learn a few skills regarding real estate. Below are tips that according to Adrián José Velasquez Figueroa will assist an investor to make profits from investing in rental property.
1. Buy below market values
The low valued rental property attracts lower costs in the form of mortgage payments. On the other hand, since their actual value is much higher than stated, they tend to earn a lot of income. This translates to higher profits for the investor.
2. Choose the right neighborhood
Different areas in Panama attract different types of tenants and levels of income. Areas like Punta Pacifica and Punta Patilla attract short-term tenants and high income according to Figueroa, whereas areas like Eldorado attract long-term tenants and lower pay. It is up to you to do your due diligence and find out the areas that will maximize your profits.
3. Be aware of the laws of Panama rental
Laws, especially tax laws, affect the amount of profit a rental property investor will make. It is, therefore, vital that you study the tax laws of the country on adrianjosevelasquezfigueroa.com. This will help you know your tax cost and calculate your profit accordingly.
4. Make sure there are services available
Services include gyms, private parking and pools. These services tend to increase the rental income a property can fetch and have high demand says Figueroa. Thus, invest in property that has these services since it will fetch more income meaning more profit for you.
5. Inspect the quality of construction
Poor quality of construction means more repairs hence higher costs. Seek the services of a certified building inspector to help you find quality houses. Knowing the quality of a house will also help you negotiate the price.
6. Managing rental property
Managing property comes at a cost, but it is of great benefit to you. You can either manage it yourself or seek the services of professionals. It is vital that you do your due diligence to know which option suits you best and maximizes your income.
7. Something big is not always better
It not always that big property attracts high incomes, but often come at high costs. More vital than the square footage is the number of restrooms and kitchens. Go for one that has more rooms.
8. Public services can increase
Transfer the cost of public services to the tenant. You do this by putting them under their name. This will lower your costs.
About Adrian Jose Velasquez Figueroa
Mr. Adrián José Velasquez Figueroa is a figurehead in the Panama business community. He strives to show young leaders the way forward and helps businesses grow. He currently works for five different companies in Panama holding different positions in each of the companies such as treasurer, director and president.