Whether you currently own rental properties or you are just starting out in your real estate endeavours, knowing how to maximise your rental income is crucial in today’s real estate market.
It’s easy to get stuck in a routine of bill collecting and tenant turnover but you could be missing out on significant profits. With the right planning, you can increase your rental income with very little effort.
Know your value
The first step to increasing your real estate profits is to know the value of your properties.
Before you settle on a desired rent, make sure to thoroughly research the market and understand where your properties fit in. Consider acquiring the help of professionals such as letting agents in Bristol and take into consideration your property’s location and compare it against similar sizes and styles.
Familiarise yourself with rental property supply and demand in your area and price yours accordingly. Don’t forget to consider anything spectacular your property offers whether it is proximity to desirable schools, an upgraded kitchen, or available amenities. When it comes time, don’t be afraid to increase the rent but remember to stay competitive.
Prioritise your property
Though a property’s market is a major factor in income consideration, the property itself is where you should focus your attention. It will be difficult to maximise your profits if you maintain a less than desirable property that no one wants to rent.
When a tenant moves out, be sure to freshen up the property. Adding a fresh coat of paint, updating the landscaping, or replacing the carpets can make a world of difference to a prospective tenant. Keep the fixtures and appliances up-to-date and, if renovating, focus first on the kitchen and bathrooms. Normal wear and tear can turn anybody off who is looking to rent and the idea is to keep the time the property is empty to a minimum.
Value your tenants
Even more important than bringing in new tenants is keeping the ones you already have. The objective is to minimize tenant turnover (and the expenses that go with it) and lessen any income gaps. Valuing your current tenants will increase their chances of sticking around longer and signing lease extensions. With every tenant that moves out comes the burden of preparing the property through professional cleaning and repairs, re-listing the property, and a lack of income until a new tenant moves in.
This can be quite costly but by providing quality customer service you can assure this will be a rare obstacle.
If you’ve tried everything above and your tenants are happy, think of possibly adding some unique revenue streams.
Coin-operated laundry facilities and vending machines make great additions to multi-tenant buildings and require very little effort on your part. You can partner with some low-cost local contractors and offer helpful house cleaning or landscaping services to your tenants. Consider making the switch to solar panels to lower your energy costs and don’t forget to take advantage of all available tax breaks, a moneymaking solution often missed.
Maximising your rental income is much more than simply increasing the rent. There are many ways to increase your profits without alienating your tenants. Knowing your value and proving that worth to the tenants will go far in your attempts at profit maximisation but don’t forget that a little ingenuity also goes a long way.
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