There are numerous ways to maximize your profits from a rental property. With the right strategy, rather than sitting back and waiting for the monthly rent to come in, you can increase the value of your property. You’ll then be able to generate more money, have high-quality renters and never deal with late rents. Here are six tips that will help you get the most out of your rental property!
1. Reduce Vacancy Time
One of the best ways to increase your income from a rental property is to make sure that it is leased every day of the year. If you are in an area where rental properties are in high demand, you should try to weed out the short-term tenants. Find reliable tenants that are willing to stay for long periods. You can also think ahead and put out an ad before their move out date.
Do you live in a neighborhood where the offer of rentals exceeds the demand? No problem! There are sure-fire ways of making your property stand out. It’s all in the ad rental description, make sure to comment on all the unique features of your property: a one-of-a-kind view of the city, the ultimate backyard for family barbecues or leisure areas with spa-like conditions and so on.
2. Do Your Own Maintenance
The biggest nightmare for most landlords is paying for regular maintenance work on their rental properties. Most of the times renter tend to overestimate the work that they require. If you blindly give in to their demands, you could end up overpaying handymen for minor repairs.
The best way to get around this problem is to try and do the maintenance work yourself if you are capable. By changing pipes, outlets, bulbs or other small replacements, you can save hundreds of dollars during the renter’s stay. This strategy is even more productive if you live close to your rental. You don’t have to spend too much money on gas or transportation to get there.
3. Manage Your Property
A common trend among landlords with multiple rentals is to hire a property manager. While this practice may give you more peace of mind and added convenience, some may not be able to afford it. Property managers usually get between 10 and 20 percent of your monthly rental revenue.
If you feel you have time to handle most of the day-by-day duties of a landlord, you can keep the property manager’s salary. At most, you can delegate some tasks to your partner or a relative to keep the revenue in the family.
4. Show Exigence for Tenants Paying Rent Late
Establishing a good landlord-tenant relationship with your renter is essential for a long-term collaboration. Some landlords tend to take this connection too far and sacrifice diligence when their renters are not paying rent on time. Sometimes even several months in a row.
At the end of the day asking for their dues is like forcing your friend to pay you back a loan, and it just doesn’t feel nice, right?
Wrong! Renting a property is a business, and your goal is to make a profit, even if you rent it to someone who is your good friend. Avoid making too many concessions, and let your renters know about the legal complications that follow unpaid dues from the first time they are late.
5. Add Extra Fees for Pets
While most landlords avoid renting their properties to pet owners, you can take advantage of their rebuttal and make a profit out of it. Renters who have pets are usually high-earners and are generally responsible people. Therefore, they make for good quality tenants who can pay on time and tend to stay for longer periods.
You do not need to charge your renters exorbitant amounts of money for their pets. A reasonable pet fee would be around $20 per month, which could cover any damage that their dogs or cats may create. A responsible pet owner would rather pay the fee and comply with your conditions rather than renting from a landlord who is instantly reluctant to seeing pets on his property.
6. Add More Amenities
A good way of increasing the value of a rental property is to add more user-friendly facilities on its premises. You can start by placing vending machines, so residents don’t have to go to the store for a small item. It’s also great for kids to get a quick snack or some gumballs.
Vending machines may not double your profits, but they might provide a few extra dollars per year. Additionally, you can supply the property with satellite TV, high-speed internet and other services that can validate your demand for a higher rental price.
Increasing your profit and keeping happy tenants will ensure that you will have fewer vacancies and less stress. Try these six tips to get the most out of your rental properties.