There’s no question that real estate can be a smart investment – and buying property to rent can be even smarter! The question is, how do you start making money off that rental property once it’s purchased? Rest easy; we’ve got a solid guide to get you started making money off that rental so that you can see those returns on investment ASAP! Check out these simple steps.
Get the property renter-ready. If you want your rental property vacancy to be filled quickly, the first thing you can do is get the property ready. That means making sure that all the necessary appliances are working properly, that any damage to the unit is repaired, and make sure that the utility connections are up and running smoothly.
Renters want to be able to move in and get busy living right away without the hassle of mending a broken sink or busted mirror, so one thing you can do to attract more and better tenants has the place totally ready to move in. Remember, you’re still selling a product; you want that product to be enticing to potential customers.
Price competitively. It can be tempting to try to squeeze every last dollar you can out of a renter, but the fact of the matter is, there are often many other options and many other places that are willing to accept less money for rent. You want to be smart about pricing: see what recent trends in your area’s real estate and rent prices are.
A safe bet is to choose a price point in the middle of the pack for your rental property’s size, location, and amenities. People may love a deal, and they’ll sometimes fork out extra for something nice, but they’ll always be happy with a fair price.
Seek out the best renters. One thing that can seriously damage your returns on investment is constantly having problematic renters. A high turnover rate and all the associated fees with people moving in and out can be a huge cost burden to landlords. Consider using a service to find out eviction records and reports for landlords to properly vet your tenants.
Quality tenants that will live in your unit for years are a great asset to a landlord. Regular and on-time rent payments make the difference between making your own bills and falling behind, so be sure to invest in finding the most reliable and trustworthy tenants.
Advertise online. You want to be sure that your property is widely accessible for inquiry across a variety of platforms. These days, the first place people go to look at listings is the internet. Online services that host local listings are the best way to get plenty of exposure to your rental property.
While you want to invest in the high-quality tenants, you also want to cast a wide net, so you have as much choice as possible. Posting online ensures that enough folks apply to your listing to give you some solid options.
Host showings. Once your place is spruced up and appealing, you should start showing it off. People are much more comfortable renting someone that they’ve actually been to before, rather than someplace they’ve only seen a few pictures of online (as important as maintaining your online listings can be).
It can be a hassle and take up time, but meeting with possible tenants in person to show them the place will give both you and them much more peace of mind – that’s key to maintaining a healthy, respectful, and profitable rental agreement with a tenant.
Offer perks where you can. If you own a parking lot near your unit, or perhaps have a solid agreement with a utility company, or can supply washing machines and driers, consider this. Renters love perks; as everything item, they can get for free means one more thing they don’t have to add on to the month’s expenses. If it comes at little to no cost to you, this can be a great way to incentivize long-term, committed renters that will remain loyal to your unit!
Making money off a rental property is all about investing in quality, from the property itself to the renters you hope will occupy it. Invest in your future profits by putting time and effort into that quality today!