1. Choose property attractive to tenants

It should be clean, have good-sized bedrooms, off-street parking, and good positioning away from noise and main roads. These factors will ensure your property is attractive to renters and will guarantee your income stream.

2. Choose property that will grow in value

If the property is close to a major CBD, beaches, schools, public transport and leisure facilities it’s more likely to grow by more than the average in a good market and is more likely to hold its value in a down market. If you buy around the median price then more people can afford to rent it and more people can afford to buy it if you were put into a forced sale position.

4. Create instant equity

Quick renovations such as a paint job, re-carpeting, tidying the garden, painting the fence, installing new curtains or blinds, and replacing the kitchen-cupboard doors can significantly improve the value of your property.

5. Refinance to create a buffer

When your property grows in value, refinance to create an emergency ‘buffer’ zone. This will ensure you can continue to make mortgage repayments even if you lose your job.

6. Re-sign your tenants

Hire a professional property manager to ensure you get reliable tenants and that they pay a good market rent. Consider tying your existing tenant down to a new 12 month agreement. This will help guarantee your rental income.