The real estate market is so hot right now that many people are turning to rent until they can afford to buy. This has proven to be very profitable for landlords who invested in rental properties. They are experiencing profits that would have been hard to come by ten years ago or so. The interesting thing is that many are still leaving money on the table.
There are many ways to increase revenue on your rental property so you can maximize what you are making. This added revenue can help you build your own real estate empire by allowing you the freedom to invest in more real estate if you’d like. In this article, we will go over the ways that you can maximize your profits.
1 – Add value
It is important to attract good tenants and keep them, so one way to do that is to make sure that your properties aren’t just places for them to lay their heads. Make sure that the units are upgraded and offer a lot of comfort and value for the tenant.
For instance, having the best garage door opener for them to not have to open it themselves. This is a little bit of luxury that tenants will appreciate.
You should also make sure to give them some storage space if they are in an apartment or shared house. If there is a basement or garage, set up an area where they can store their things with a lock for security.
Then you can also add some finer touches like a fire pit if there is a yard or even a bidet toilet combo like they have in Japan. These things will make a big difference when it comes to the types of tenants you have.
2 – Keep your tenants for the long term
When you have tenants that leave after their lease is done after a year then you will be spending a lot of money to attract new tenants and go through the screening process. It ends up costing you money when you are not able to keep tenants.
By doing things like adding value and making sure that you are a good landlord, you will keep people on your property by resigning the lease every year. The longer you can keep them the less expensive it is in the long run.
3 – Understand the market
When you are looking for a property to rent out it is very important that you know what type of property to buy and how much you can charge for it. This involves getting some insight into the market where you’re thinking of buying. This will prevent you from making a mistake that costs you money in the long run.
For instance, if the area where you are planning to buy is where a lot of families are looking to move then you need to have a house with a yard for that market. If it’s mainly single, young professionals then a condo with a lot of amenities is what you should be investing in.