Being the owner of a rental income property is a good way to earn a steady stream of passive income. It is an investment that yields attractive returns irrespective of the condition of the economy provided your property is in a good location and you market it properly to attract good quality tenants. You can expect a net profit of 5-8% on your investment if your property enjoys high occupancy rates. If it is a million-dollar property, you can imagine earning 50k to 80k from it per annum. In addition, you also benefit from appreciation in its value over a period.
Utilize services of several realtors to market the property
You need to market your property aggressively if you want to beat your competitors. For this purpose, you should contact not one or two but several realtors so that your property gains maximum exposure among target group of renters. Stick to a single realtor only when you are getting a very good deal from him.
Fix the rent wisely
You cannot charge a very high monthly rent if renters have other options in your area. Also, you can lose out to your competitors unless you are offering unique features and amenities to your tenants. You can consider lowering your rent if your property is not able to attract large numbers of tenants. You have to go by the housing market conditions in your area in this regard. You can consult an experienced realtor to arrive at the right monthly rent for your property.
Make use of professional quality photos
Nearly all renters these days look up for available properties online. They first look at the photos and then read the description containing features and amenities. Therefore, it is very important to hire services of a real estate photographer to click beautiful photos of your property before posting on realty websites. Only if your photos are crustal clear and beautiful can you expect potential renters to pause and act on your listing. These renters simply skip your listing and move on to the next available option if your photos are ordinary.
Ensure all utilities prior to renting out
You want your tenants to live comfortably once they have got inside your property. Make sure that you have sorted out utilities like electricity,water and gas in all units before listing your property on the market.
Fix all repairs before renting out
Tenants do not like to face restrictions in their movement once they have moved in. Therefore, you need to carry out all minor repairs in all the units before allowing the tenants to move in. It costs you more to repair the property once tenants have started to live inside. It is also more problematical with families living inside.
Go for a paint job
No matter how good the condition of the property, it is advisable to repaint the property in new and vibrant hues. It adds to the decor of the property and catches then attention of all potential renters in your area. Newly painted walls have a certain appeal and charm that plays on the minds of applicants coming over in search of home to your property.
Get good quality furniture and appliances
Tenants are ready to pay a higher rent these days if they find that they are getting good quality furniture and appliances. Also, by buying these things, you can have total peace of mind for a long time to come. It is better to buy in bulk at wholesale prices to save your hard-earned money. You will experience very little wear and tear with good quality furniture items and appliances.
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