Podcast Summary
Factors affecting the length of void periods: Consider your personal circumstances, comfort levels, and likelihood of emergencies when determining the amount of rent to keep for void periods. Strike a balance between having enough coverage and not tying up excessive capital.
The number of months' rent you should keep for void periods depends on your personal circumstances and comfort levels. While it's important to consider worst-case scenarios, such as extended eviction processes and unexpected repairs, the likelihood of these situations occurring is low. For instance, a boiler typically lasts 10 years, and professional tenants can help minimize void periods. Ultimately, the amount of cash you hold for void periods is a personal decision. It's essential to strike a balance between having enough to cover potential emergencies and not tying up too much capital in reserve.
Reducing unexpected expenses with multiple rental properties: Having multiple rental properties can help subsidize losses and reduce the need for large emergency funds. Consider tenant demand, insurance, and local market conditions to determine how much to set aside.
Having multiple rental properties can actually reduce the amount of money you need to set aside for unexpected expenses, compared to having just one property. This is because the income from the properties that are currently rented can help subsidize the losses from the property that isn't currently making money. Additionally, having rent guarantee insurance can further reduce the amount of money you need to have set aside, as it can provide coverage in case of tenant non-payment. It's important to consider the local tenant demand and average time between tenancies when calculating how much money to set aside. Having multiple properties also reduces the risk of having all of them empty at the same time, making it less likely that you'll experience a significant loss of income.
How Much Cash Should Property Investors Have in Reserve?: The amount of cash reserve for property investors varies based on individual risk tolerance, property type, and tenant demographics. It's essential to have some cash reserves, but the exact amount can differ greatly. Connecting with like-minded individuals and forming mastermind groups can provide valuable insights and support during the investment journey.
There's no definitive answer to how much cash reserve every property investor should have. It depends on various factors such as individual risk tolerance, property type, and tenant demographics. While it's essential to have some cash reserves, the amount required can vary greatly. For instance, cash-rich investors might not need to set aside much, whereas those with company-owned properties might want a small emergency fund. Ultimately, it's up to each investor to decide how much cash to keep aside based on their unique circumstances. Furthermore, having a supportive network can be invaluable in addressing questions and concerns that arise during the investment journey. Attending Property Hub Summits can provide an opportunity to connect with like-minded individuals, form mastermind groups, and gain immediate answers to pressing questions. These networks can serve as a source of motivation and a sounding board, ensuring that investors have a community to lean on during their investment journey. For more insights on this topic, check out Rob's blog post on the Property Geek website, which will be linked in the show notes for this episode. Remember, every investor's situation is unique, so it's crucial to stay informed, connect with others, and make decisions based on your individual circumstances.
Attend real estate summits to build your network: Expand your network by attending real estate summits, connect with experts, learn valuable insights, and meet potential partners.
Building a network in real estate starts with attending summits. To make it easy for you, just text the word "summit" followed by a space and your email address to the number "3802" to get more information and book your spot. Don't miss out on this opportunity to connect with like-minded individuals and learn valuable insights in the real estate industry. Remember, your network is your net worth, so start expanding it today! Additionally, the hosts mentioned that they look forward to seeing listeners at the summit and on their property podcast on Thursday. They also promised to be back next week with another episode of "Ask Rob and Rob." Overall, attending summits is an excellent way to begin building a network in real estate. It provides opportunities to learn from industry experts, connect with potential partners, and expand your knowledge base. So, take the first step and book yourself onto a summit today!
