A guide on how to make money on your rental properties written by Andy Cho. Stay connected with Andy at email@example.com.
A rental property is a good source of income if you’re doing the business the right way. However, if you’re just buying tons of properties without really thinking about how they’re running or earning, then you’re likely just flushing your money down the drain.
Instead of spending all your savings on acquiring properties, it’s a good idea to reassess your business model and think of a fresh approach to boost its earnings first. These expert tips should help you put your rental property to a more profitable track.
How to Make More Money on Your Rental Properties?
Find Your Target Market
Typical rental housing can give you a steady cash flow. But if you are looking to increase your profits, you can consider turning your home into a rooming house or dormitory housing, depending on your niche market. Another good option is to open it up for bed and breakfast accommodations. The amount you’ll earn from positioning your rental home in such ways can cover your expenses and utility bills with some cash to save.
Get a Security System
One of the most common factors people consider before renting a home is its security and how safe they’ll be once they get settled in. However, before you go straight to installing a security system, it’s a good idea to assess your property first to have a clearer idea of what security products it will need.
For extra protection, you can invest in a portable home security system. It’s a good addition to your rental properties because it can easily be moved in case your renters prefer a different kind of system.
Get New Locks
Another good way for you to secure your rental property is to get a smart lock. This type of lock allows you to control your renters’ access, including giving out permission and revoking it once their stay is due. Although smart locks are more expensive than traditional locks, they are more cost efficient in the long run, particularly since you won’t have to keep changing locks whenever there are new renters.
One key thing to remember about smart locks is that you have to orient your potential renters about having them in your home. Some people might not like the idea of letting another person have access to their doors, even if it’s their landlord.
Add Something Extra for Your Renters
Everybody finds it nice to receive something extra once in a while. And for your rental property, it can be as simple as repainting its walls or adding a nice kitchen top or even a dishwasher. If your property is located in the city or the metro, furnishing your property may also help with your revenue. You can add a couch, TV and bed for added value. In setting these pieces up, make sure that they will appeal to a wide range of people and not just to you alone.
Furnishing your rental home can make your rental property even more attractive, especially if you have a target market. Aside from that, the additional items you install also give you the right to charge a bit higher than your previous rate. You just have to remember that your rate should be justified by the items and products you put in your home, so make sure they are in top shape and in good quality.