Renting a property can be a difficult process, because you not only need to assess the property, but also the tenants you are renting to in order to protect and grow your rental income. If you want to simplify the process, or if you want to make sure that you are maximizing profit at every stage, then take a look below.
Keep your Property in Good Shape
First and foremost, you need to keep your property in good shape. Appearances do matter, and tenants are far more likely to pay more for a property that’s in top condition.
By staying on top of your repairs and by making sure that your rental property is competitive with the other properties on the market, you can attract higher-paying tenants, as well as increase your property’s value overall. If you want to keep your property in the best shape, then regular maintenance is important.
Plumbing, heating, and even your electrical systems need to be in working order, and you also need to invest in your home’s curb appeal. Mow the lawn, trim your bushes, and make sure that you freshen up the exterior with a fresh lick of paint.
When you’ve ticked all of your boxes here, you then need to consider modernizing your kitchen and bathroom. Energy-efficient appliances are so important here, and they can make all the difference to whether or not you attract quality tenants.
Offer Perks
Another good thing to do would be for you to offer perks. If you want to make money on your rental property, then consider what your tenants want from you, and add them to your current property.
You can even charge more for this, which will result in you making more profit. Accepting pets, for example, will not only open up your tenant pool, but it will also allow you to make more money from each rental payment.
Many tenants expect their home to be modern, especially if they are paying top-dollar for it, and meeting these expectations can have a direct impact on your rental income. One way to work around this would be to simply install a smart thermostat or some smart technology.
Keyless entry systems also allow you to charge more for your property, and you can make the money back from them in no time at all. Keyless entry systems can also help you to make more profit from your home, as you may find that your insurance premiums reduce as a result.
Conduct Market Research
Don’t leave money on the table by simply undercharging your tenants. As time goes on, you will undoubtedly do work on your property, so make sure that you are always adjusting your rental rates so you can make the most profit.
Use tools to gauge the market interest and then assess the trends that are currently unfolding. If you can do this, you will find it easier to not only charge more but also make sure that you are being fair with your rates.
Keep in mind that rental demand may vary throughout the year, so if you do intend to increase your rates, it’s wise to make sure that you are doing so at a peak period, so you can avoid your property being empty for long periods of time.
Find the Right Tenants
Finding the right tenants is so important. It doesn’t matter what steps you carry out or how good your property looks, because if you don’t have reliable and trustworthy tenants, you can’t ensure long-term profitability.
The best way for you to find tenants who are going to look after your property and who are going to pay their rent on time would be for you to use tenant applications to your advantage.
Software allows you to find out your potential tenant’s rental history, as well as their past addresses.
You can also find contact information for previous landlords, so you can find out their past living situations, whether or not they were respectful of the property, and why they want to move.
Information like this can be invaluable, and it also allows you to not only find good tenants, but also make sure that you aren’t letting people into your properties that have a bad history.
Late Fee Strategies
Adopting a late fee strategy is also a good way for you to encourage on-time payments. You do need to make sure that you outline this in your lease agreement, however. As well as implementing late fees, you might also want to offer incentives for those who make timely payments.
Offering incentives, including discounts for those who pay their rent on time for a whole year, as well as small tokens of appreciation, can go a long way.
Think about leaving your tenant a gift in their home at the end of the year if they have paid their rent on time every month, or give them a discount on their rent for the next 3 months.
If you do this around the festive period, you will soon find that your tenants end up greatly appreciating it, and that you can also motivate them to continue their good habits.
Even though offering a discount is the best way to cut down on your profit margin, the long-term profitability that comes from having a reliable tenant cannot be overstated.
Additional Revenue
If you have implemented all of the above steps, then it could also be worth looking into additional revenue. Think outside the box, and also make sure that you are renting out any unused space you may have. If you have a garage at the back of a property, this may be a suitable space for a business owner.
If you know someone who details cars or maintains them, renting out a small garage space could be a good way to ensure long-term tenancy, as well as guarantee that they are going to look after the space, as they are a business owner themselves.
By looking beyond residents, you will find it easier to generate extra income without impacting the tenants you have now. Steps like this can make a real difference to your bottom line, so keep that in mind.
