You do not need to be rich to become a landlord. In mid 1993 about one half of residential property investors had a weekly income of less than $500 (that is, a total annual income of less than $26,000).

You do not have to be a home owner first. Home ownership and investment are separate matters and many investors do not own their own home. Renting you own home out whilst simultaneously renting yourself is a common and growing practice.

Young people can and do invest in housing. About 30% of all rental property in Australia is presently owned by people aged less than 35 years. 7% of investors became landlords before the age of 25.

Women can invest in their own right. They do not need to have a partner or the financial support of their parents. More women than men presently own housing in Australia so there is nothing abnormal about women investing in their own security.

"Buy when prices are low and sell when prices are high" has been the traditional rule of thumb for purchasing any sort of property. This rule is timeless. Purchasing in winter and during economic recession are logical conclusions, therefore.

The property you select to buy is the most important element of your investment decision. Good condition, low maintenance, easily able to be sold for owner occupation, location and so on, are all important considerations. Purchase of an investment property requires no less care than if you are buying a home to live in yourself.

Decide carefully between a house and a flat or unit. The latter has less maintenance but the former property has land. Remember, land generally appreciates while a building depreciates. This is especially true in big cities like Sydney and Melbourne.

Match the property you buy with the market demand by prospective tenants. Most tenants require separate houses and at least two bedrooms. Only 10% of tenants presently live in a bedsitter or one bedroom apartment. One would be more cautious, therefore, in purchasing a property suitable for a minority market.

Look carefully at current and future demand for rental property in the location you are considering purchasing at. Only about 20% of investors consider rental vacancies when deciding whether or not to invest. This is a risky oversight.

During a period of low inflation it is important to focus upon income rather than capital gains. Returns of 6% or better are relatively attractive when inflation is only 0-3%.

Determine who will manage your property. The vast majority of investors use a real estate agent to manage their assets because of the complex residential tenancy laws. Most leading Property Managers provide a high level of supervision and service with respect to your property. This should be taken into account when determining a fair fee for management. Say $500-750 p.a. is hardly a lot of money to tenant, collect rent, and manage an investment worth $100,000-200,000 considering also that it is a tax deduction.

Carefully organise a lease; this will protect both you and the tenant. All households renting from a real estate agent would have a lease. About 70% of people renting privately would appear not to have one. Regardless, private landlords need to be mindful of their personal limitations on this front.

Be ever mindful that tenants have rights and that in the 1990's consumerism is strong. Professional assistance in managing your property is therefore desirable. In one recent survey tenants rights were the least considered of all the issues reported by investors at a figure of only 6%. This oversight is unwise.

The 45-55 year age range is traditionally a good time to invest. About 10% of this age group own an investment property. It is at this stage of life that a typical household usually enters a net savings position. Given the large number of baby boomers entering this age bracket, there is likely to be a growing interest in residential investment in the future.

Maintain your property well or your asset will decline in value unnecessarily. Nearly two thirds of investors spend less than $1,000 per year on repairs and maintenance. This is probably less than a quarter of what should be outlaid to maintain a premises in original condition.

Do you wish to rent your property furnished or unfurnished? Presently, only about 15% of rental properties are partly or fully furnished. Most landlords can't be bothered with the hassle. Serviced apartments increasingly provide a furnished alternative; investors can also buy them.

Older investors need to consider carefully whether they wish to continue to hold their property in retirement. Only 8% of all investors are presently aged over 65 years, which suggests that as people get on in years they find the task of owning and running an investment property too demanding. This need not be the case if one uses a good agent.

Determine who will manage your property. The vast majority of investors use a real estate agent to manage their assets because of the complex residential tenancy laws. Most leading Property Managers provide a high level of supervision and service with respect to your property. This should be taken into account when determining a fair fee for management. Say $500-750 p.a. is hardly a lot of money to tenant, collect rent, and manage an investment worth $100,000-200,000 considering also that it is a tax deduction.

Carefully organise a lease; this will protect both you and the tenant. All households renting from a real estate agent would have a lease. About 70% of people renting privately would appear not to have one. Regardless, private landlords need to be mindful of their personal limitations on this front.

Be ever mindful that tenants have rights and that in the 1990's consumerism is strong. Professional assistance in managing your property is therefore desirable. In one recent survey tenants rights were the least considered of all the issues reported by investors at a figure of only 6%. This oversight is unwise.

The 45-55 year age range is traditionally a good time to invest. About 10% of this age group own an investment property. It is at this stage of life that a typical household usually enters a net savings position. Given the large number of baby boomers entering this age bracket, there is likely to be a growing interest in residential investment in the future.

Maintain your property well or your asset will decline in value unnecessarily. Nearly two thirds of investors spend less than $1,000 per year on repairs and maintenance. This is probably less than a quarter of what should be outlaid to maintain a premises in original condition.

Do you wish to rent your property furnished or unfurnished? Presently, only about 15% of rental properties are partly or fully furnished. Most landlords can't be bothered with the hassle. Serviced apartments increasingly provide a furnished alternative; investors can also buy them.

Older investors need to consider carefully whether they wish to continue to hold their property in retirement. Only 8% of all investors are presently aged over 65 years, which suggests that as people get on in years they find the task of owning and running an investment property too demanding. This need not be the case if one uses a good agent.

The calibre of your tenant will determine whether the experience of being a landlord is satisfying and rewarding. So do your selection carefully. Better still, employ the services of a real estate agent for the task.

As a rule, buy your property within easy inspection distance. There are difficulties buying far away. 97% of investors purchase in their own State or Territory - 29% in the same postcode, 49% in the same capital city or region and 19% elsewhere in the same State or Territory.

Do not purchase a property very close by if you are not emotionally suited to becoming a landlord. If you are going to be regularly passing by your property to check its state, worried by things that do not look right or haunting tenants, then buy something further away.

Seek professional advice if you inherit a property and are considering renting it. Only about 4% of rental property at present was so acquired; but the figure will grow rapidly in future. Emotional ties and capital gains tax require unique consideration.

Rental of a former home is very common. Consider this option seriously. About one quarter of all investors started up via this route. When you are changing over or are being transferred in your job, give thought to renting out your existing home.

Funding your purchase is integral to the viability of your investment. About 60% of investors borrow some portion of the purchase price. Borrowing rates for investment these days are less likely to have a premium over owner occupation. Shop around if you are charged extra.

Tax losses are not a reason to invest. "Negative gearing" and "leverage" are all very well, but tax deductible losses represent merely foregone revenue to the tax office and a real out-of-pocket cost to you. Property investment should usually stand alone as a financial venture within the medium term for most investors.

The ideal tenant is one who pays their rent and does not unnecessarily damage your property. Investors should be wary these days of discrimination against existing or prospective tenants. Race, religion, sex, marital status, children and so on are not reasonable grounds in themselves to level against people.