Undoubtedly, the fact that you can buy a property and start earning money on it now, and hopefully have it appreciate in value for big gains in the future has caused more people than ever before to put their money into property. Unfortunately, many of them don’t really know what they are doing, and they are making much less in rental income than they really could. If you’re one of them, check out these simple ways to maximize rental property income:
Get your finances in order
What’s your personal budget got to do with your rental property(s)? Quite a lot actually. You see, the better you take care of your own personal finances and build up an emergency fund, which you can dip into when needed, and the more you’re able to organize your budget so that you can make savings, the easier it will be for you to deal with problems at your rental properties promptly. This will stop you leaving small problems until they turn into big ones, thus saving you a lot of money along the way.
Monitor the market
If you’re building a rental empire, rather than just buying one property to rent out, then it pays to always have one eye on the market. That way, when an attractive property, in terms of price and ease of ‘flipability’ comes up, you’ll always know about it, and you’ll always be able to swoop in and get the best deals.
Always screen Your tenants
So many real estate investors have ended up in tight spots after installing tenants who can’t or won’t pay the rent and who ruin their properties in all manner of inventive ways. That’s why, if you actually want to make money from your properties, and not end up spending even more of it on a problem, you should always screen the people applying to live in your apartments. Even better, hire a reputable screening company to do this for you, but ensure you meet with the prospective tenants too, so that you can get your own personal read on them.
This won’t always be necessary, but more often than not, renovating your property, if it needs a little updating will enable you to charge more rent for them, which means that it’ll pay for itself in no time at all, and then you’ll making bigger profits than ever before.
Raise the rent
This one is a no-brainer – if you raise the rent of your property, you will be able to make money. The good things about this are that you can raise the rent by a few percent each year and tenants will rarely complain – occasional rent rises are to be expected. Just ensure that you treat the tenants fairly and carry out any renovations and repairs needed quickly without any hesitation or trying to minimize the problem in the hopes that it will go away.
Try new markets
If you aren’t able to make as big a property as you expected you might, then one thing you can try to raise your income is marketing your place to a different market. For example, if you’ve been trying to attract single professionals, try pitching your home at a family, or if it’s in a good location, consider the vacation market instead.You might have to make a few changes to the property, such as adding an extension or renovating something you were hoping to leave well alone, but there is a good chance that it will, and you’ll be able to bring more profit in than ever before.
Work to keep your properties occupied
When your properties are vacant, they’re eating up lots of your money, which is why you must work hard to keep marketing them when they become vacant.Of course, it’s even better to keep good tenants in the place, and this is something you can do by maintaining the property well and keeping up good relations with them.
Use late fees
It’s really good to be a compassionate landlord who gives his or her tenants some leeway if they’re having a tough month., That being said, having a policy of late fees in place, and using it when you feel it’s necessary is a good way to keep your finances liquid and encourage prompt payment from your tenants.
Think of extras you can add
When you own a rental property or even several of them, and they just aren’t making enough green for you, then it’s time to get creative. Install a laundromat that requires coin operation to get going, rent basic tools and equipment out to tenants, offer a cleaning service – do whatever you can to ensure the more money makes its way to your bank account each month.
Keep an eye on your reviews
If you run a sizeable rental property company, then it is always worth monitoring the reviews you get because, when you know what your tenants love, you can do more of that, and therefore make money, and when you know what you hate, you can change that, again making your company look like a better prospect to people looking for their next home.
Hire a property manager
It might seem counterintuitive that to make more money you should hire an extra employee, but if you have multiple rental units, hiring a property manager is likely to be more efficient, and your tenants are likely to be looked after better. This should mean they will stay longer and you will make bigger profits.
As you can see, there are so many ways to maximize the amount of rental income you can make. You are only really limited by what you’re worth doing, and if you do most of the things in this post, I can pretty much guarantee that you will see an upturn in the amount of money your investments make.