Top 7 Tips to Increase Profits from your Rental Property
If you have a rental property, you must be interested in maximizing profits to improve return on investment. It’s easy to think you can increase income by raising rents, but it can also backfire as tenants will find other properties on lesser amount of rent. Here are 5 top tips that can help in increasing your profits from your rental property.
Up to date leases help tenants a lot
You sign a lease document with a tenant when he starts to move in to your property. This document contains all details such as the duration of the agreement as well as the monthly rent the tenant will pay. It irritates tenants no end once the lease is up and they find themselves on a month to month status. If you can keep the leases updated, it would help tenants a lot as they can have peace of mind for another term.
Try to cut down on expenses
One good way to increase income from your rental property is to try and reduce your expenses. You know the income which is fixed. Why not do something that can reduce expenses to increase your profits? Of course, repairs and maintenance are necessary, but you can still find ways to spend less if you evaluate these expenses and monitor them closely.
Keep a portion of rental income for repairs
You know that you must look after the upkeep and repairs anyhow. Why not set aside a fix percentage of the rental income under this head to have ready money whenever you need to undertake major repairs? Windows, roof, HVAC, furnace etc are some heads that need money for repair after every few years. You can rely on this money that you have been keeping aside every month to undertake repairs easily.
Get the Best Tenants for Your Home
Nothing is worse than getting bad tenants who can ruin your property. That’s why, it is recommended that you should get tenant screening before you rent your home to someone. Always try to rent your home to a family or a couple as they’re more likely to clean your home regularly. If you’re not a professional property manager, you should consider contacting one as he/she can easily find good tenants for your home. Hiring an agent for getting good tenants will not only find you good tenants but you won’t have waste your time trying to find good tenants for your home.
Spend money on preventive maintenance
A stitch in time saves nine they say, and they are not wrong. If you can identify issues that can become big problems requiring costly repairs in future, it is better to spend a little on preventive maintenance. This will ultimately help you save your money in the long run.
Stop money loss by exercising proper eviction policy
Many tenants leave the promises without paying their rent for several months causing huge financial loss to the landlord. You need to have a proper policy in place to deal with tenants who do not pay rent on time.
Get in Contact with the Best Property Management Company
If you’ve just bought a property and want to rent it out as quickly as possible, you must be in contact with a professional and experienced management company. Otherwise, you will have to spend days or even months from your job to get tenants for your new property.