It’s estimated that over 100 million Americans currently rent their home. What this proves is that there is a huge potential to earn money with rental properties.
However, if you have begun to notice that your rental properties aren’t quite as profitable as you would like, or if you just want to future-proof your ability to earn this income, then you may need to take action. The fact is, there are several steps you can take to ensure your rental properties earn as much income as possible now and in the future.
1. Reduce Vacancies
If your rental properties are empty, they aren’t earning any money. The key to minimizing the vacancies in your rental properties is to find long-term tenants. This can help you avoid the issues that come with high turnover rates.
If your tenant winds up having to relocate, you can minimize your vacancies further by keeping your turnaround time with a new tenant as low as possible. One way to reduce vacancies is to use Luxury Retreats to improve your Luxury rentals and ensure they remain full throughout the year. You can also opt to hire a property manager to help with this.
2. Increase the Cost of Rent While Staying Competitive
If you wind up pricing your property too low (especially in the luxury sector), you may fill the vacancy quickly, but you also may be missing out on thousands of dollars (or more) in potential rent payments. The key to avoiding this issue is to properly calculate the cost versus the revenue for each of your rental properties.
While the location of your rental property is going to have a huge influence on the price you can charge, updated décor and superior condition can also help you maximize the rental income you receive.
3. Reduce Your Turnover Rate
Having your tenants move out regularly costs you in several ways. There are the costs in advertising to find someone new to move in, the cost of updating and fixing the space from the last tenant, and the cost of the vacancy itself.
While it may seem somewhat counterintuitive, by charging less rent in these situations you may actually increase your revenue. After all, one of your primary goals needs to be finding a quality tenant who is going to take care of your rental property and who is going to pay their rent on time. When you finally find this type of renter, you need to do anything you can to keep them.
4. Work Smarter Rather Than Harder
There are all sorts of technological innovations that help today’s landlords make the most of their opportunity to reduce property management overhead. Consider using some of this landlord technology to take control of your rental properties and keep tenants happy.
Most of these platforms even offer the ability for you to post your rental, along with videos and tours, on their site. This gives you the ability to reach even more clients than ever before.
5. Remain Diligent When it Comes to Late Fees
You need to always show both respect and kindness to your tenants. While this is the case, it doesn’t mean that you can be a pushover when it comes to collecting the rent that is due or any late fees.
While collecting these fees is not a very enjoyable part of being a landlord, it’s absolutely essential if you want to earn a profit.
If you want to make the most income possible from your rental properties, then be sure to use the tips and advice found here. You won’t be disappointed.