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One of the biggest worries for first-time investors is having bad tenants, according to this year’s RAMS First Time Investor Survey.
According to the findings, eight out of 10 first-time investors said their biggest fear was having tenants who damage their property, followed by tenants who fail to pay rent on time.
The least tolerable excuse for first-time investors was found to be tenants who say that they were not able to pay their rent on time because they were away on holiday.
Other fears for first-time investors included their property being unoccupied for an extended period of time, and finding a good tenant.
The report showed that tenants with previous eviction history and bad credit history were the least preferred for first-time investors, and 68 per cent of respondents intended to take up a landlord insurance policy for their first investment property.
But while first-time investors are not showing signs of stress when searching for property, 43 per cent are concerned by the possibility of rising interest rates, as well as their long-term ability to pay for a property and bad property management.
RAMS CEO Martine Jager said although the survey results show that property investment is not a taxing exercise, “there are still aspects of the search and buying process that are unappealing to buyers”.
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