Feb 13, 2021
Renting out a property is a great way to earn extra income. Whether you own one property or a hundred, there are many ways to profit from the real estate you already own. The market is more competitive than ever, and as a landlord, it’s difficult to stay on top of everything that’s out there.
Wondering what can help? Read on for tips on how to make your rental property more lucrative.
Choose the Right Property
Choosing the right property to rent out is important. The perfect rental property will have the right combination of features, location, and the number of bedrooms to maximise the tenant’s satisfaction while giving you consistent returns.
Many factors determine a good investment for rental homes. When choosing a rental property, be sure to make your requirements clear by identifying how accessible the location is.
Don’t Get Pigeonholed into Long Term Leases Only
Most property managers are limited to renting long-term leases at best, locking themselves into long-term contracts that eliminate cash flow and limit their options. Short-term rentals are a growing trend in communities across the country, especially among Millennials. But the number of property managers with ways to profit from short term rentals is still small compared to the potential market.
Never be stuck with long-term tenants again. Learn how you can make your rental property pay without lengthy leases, jeopardising your ability to deal with nuisance issues long after they emerge.
Decrease Tenant Turnover
Whether you’re a first-time landlord or a seasoned property owner, the key to profitability always begins - and often ends - with your tenants. Rental applications are high in turnover rates, and no property owner would ever want to kick promising tenants out of their home. But despite how hard you try to keep the best ones around, sometimes they just don’t work out.
Keeping turnover low is essential not only for the benefit of the business because it means more money in your pocket, but it also keeps stress off of you personally.
Be Strategic About Increasing Rent
Many landlords think that raising the rent will cause tenants to move out. Nothing could be further from the truth. The effect of rent increases is market-specific; each situation has its own unique response to rent hikes. So, take this into account when calculating your rental yield.
Sometimes, in order to increase your monthly rental income, you must first determine what your costs are and what the market will bear. Once you know those two things, figure out how to maximise profit per square foot. For that, you’ll need to review your lease agreement and do some research on comparable properties.
Being a landlord can be expensive and risky if you do not have time to maintain the property or do not know what items are needed. The tips discussed above will help you take the first steps towards making the best use of your rental property by reducing expenses and maximising profits.