One of the best ways of earning an income is to invest in properties for the sole purpose of renting them out. There are a large number of people who opt for this business plan because it can be highly profitable. But, if you are interested in expanding your operations, instead of just acquiring more properties to rent out, you need to ensure you are making the most out of your current portfolio. Listed below are some of the top ways that you can use your rental properties for making money:
Finding a long-term tenant is one of the best ways that can be used for minimizing vacancies. In this way, you don’t have to deal with the problem of turnover. If your tenant does have to move, you can minimize vacancies by ensuring that the turnaround time is kept at a minimum. If you have a high number of vacancies, it could be because you have a high price point or maybe your property doesn’t have anything that sets it apart from the rest. You can give it a unique feature that sets it apart from the crowd and offers the best value.
There are different ways turnover can cost you money. You incur the cost of advertising, the cost of replacing floors as well as painting and patching walls that your previous tenant had lived with. Vacancy is also a cost in itself and it occurs only because of turnover. Even though it might come out as counterintuitive, you can also lower the rent as this might increase your revenue. It is also a good idea to find quality tenants that can pay consistently and take good care of your property.
Sure, some people will leave eventually because they might be moving or are simply not able to afford the rent, but you obviously don’t want to lose your best tenants so you should provide them with what they need. The rent and customer service are two factors that can go a long way in reducing turnover. Also, make sure your tenants are treated with professionalism and respect.
Increase rent strategically
It is a given that you will have to increase rent at some point, but there is also a risk that you may end up pushing your tenants out. Therefore, you need to learn how to increase the rent strategically. Do some research and find out the rent being charged in your area and adjust your rates accordingly. If you are increasing your rate, make sure you can provide an offset for the costs so your tenants are not disappointed.
Use modern solutions
There are some modern solutions for renting property such as Airbnb that can help you in generating higher income in the long run. You can join Airbnb using RandyBlanco and win up to 10,000 in promotional earnings. It will give you the freedom of renting your property on a nightly basis and whenever you feel like it.