Do you have a nice property rental in a prime location and desire to earn some income from it? Are you a first-time landlord with a single-family unit or a seasoned realtor with a large portfolio of rentals?
You may be considering investing in the property rental market to earn some passive income, but you can also turn a nice profit while at it. There are many ways you can add value to your rental to attract higher rent prices, and here we discuss five of these.
Fully furnished rental units
Depending on the property location and your marketing strategy, there is a growing demand for fully furnished short-stay convenience rentals that go for higher rent prices. Property location in this category is a primary consideration as the rental has to be within the geography of the target demographic. While researching the potential market for your rental, talk to professionals in Evernest, Corvias, RPM, or Oz Realty full-service property management operating in Toledo for insights into the short-stay market segment.
Vacationers are the leading renters of short-stay residential units and can easily pay premium rent prices for tastefully furnished homes. Traveling professionals visiting local branches or clients for short stays also look for fully furnished apartments rather than hotels for privacy and comfort.
Combine these two categories of renters to generate a positive cash flow and higher profit than you would in conventional long stay rentals through an effective marketing strategy.
Stability through low resident turnover
It costs money to maintain a vacant house, just as it costs more money to find new renters. Long vacancies and high resident turnovers can deplete your savings and land you into financial problems with the possibility of losing your property. Avoid these negative possibilities and make a profit instead by working more at tenant retention for long-term stability in your real estate investment.
Handing the keys over to your new tenants and walking away only to resurface looking for the rent does not entice renters to stay longer. You must strive to develop a strong relationship with renters, treat them like family, and offer exceptional customer experience through prompt response in emergencies. The longer they stay, the faster you recover initial and recurring expenses to start earning a decent profit on your property.
Provide services and amenities at a cost
Thinking smart and offering additional services to your renters at a fee can earn you a tidy profit over the income from rent. You can offer to handle the laundry, get the groceries, collect kids from school, and clean house with tenant at a fee to turn in a nice profit while increasing retention and resident satisfaction. Income from these additional services can cover your expenses while you plow back the rent income into property improvements and mortgage pay down.
Consider incorporating other recreational amenities into your property rental for enhanced resident satisfaction if space allows. Provide a modest but well-equipped fitness center for renters or an on-site dog park for pet owners to use at a prescribed fee. Speaking of pets, did you know that you can charge a monthly pet rent including pet deposit legally?
Sell additional storage space
Do you have common area closets or unutilized spaces in basements, attics, and sheds on your property? Your renters could be looking for additional storage space, and you could offer these at an extra charge for profit. Most renters have stuff they don’t regularly use or need that ends up as clatter eating into their livable space and would gladly pay for storage.
Improve these spaces by adding security features and renting them out to tenants in need as separate options from the main unit. Alternatively, if the additional storage is in the same space as the rental unit, you can include its charge in the overall rent payable and allow the tenant unfettered access. Be innovative and convert any free space around your property into an income earner for the ultimate profit.
Grow your portfolio by reinvesting
The first property rental should serve as a starting point and resource for growth in your real estate investment venture while still making a profit. To make the ultimate profit in the real estate market, consider increasing your property portfolio for greater returns and sustainability. Start by stabilizing and maximizing your income on the first property rental and use the proceeds to plow back into an additional property acquisition.
As you pay down the mortgage on the initial investment property, you conversely release the rental income to fund the purchase of additional properties. By repeating the process, you will soon move in leaps and bounds, acquiring more properties comfortably without the need for expensive commercial borrowing. Be strategic in your planning and focus on the set goals as you launch your real estate investment business with that first property rental.
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