Real estate investment is the modern day gold rush, but similar to the gold rush who and how to make a profit seems more like luck, rather than chance. Thankfully investing in rental properties is a tried and true way to make a profit, and with many options such as renting properties it can be a retirement fund waiting to happen. Follow these 3 tips to make a profit from renting your rental properties.
This sounds easy right? If someone is renting your space than you are making money. The closer to 0 you keep your vacancy the more money that you make a year. By staying on top of your leases and understand that people will sometimes have to move for jobs, or buying their own homes. If a tenant does decide to move out, make sure you are advertising the space as soon as you can. The sooner you can get new people looking at your space, and getting a freshly inked lease, the more money goes into your pocket. It may be worthwhile to have shorter leases (2-3 months for summer) for a reduced rate to keep that income flowing in before you can find a long term tenant.
Be a Good Landlord
It’s important to keep good tenants from moving, since a empty space means no income. Keep your tenants happy and make sure the space they are renting is in top condition and is safe. By providing adequate lighting, safety features, and routine maintenance will decrease the chance of a good tenant wanting to move to a place down the street. Be understanding of your tenants conditions, there may be emergency situations that cause a late payment once in a great while, it may be in your best interest to waive the late fee to show understanding and keep the tenant happy. But don’t tolerate poor tenants, if someone is late consistently, tries to get out of paying late fees, be firm. It’s better to have a empty room than a poor tenant.
Add Cash Streams
So you have happy good tenants, and are looking to make more of a profit? This can be achieved by installing coin laundries, and soda machines! Make doing laundry more convenient for your tenants by installing a mini laundry mat in your place. This will make tenants happier as well since they wont have to spend their whole day at the laundromat and would rather do it from the comfort of home. These additional cash flows will pay themselves off in no time.