How to Increase Your Profits from Your Investment Property
Sunday, August 2, 2020, 6:00 AM | Leave Comment
An investment in real estate is the surest way to get a regular income.
It may take you several years of hard work to get a footing in this industry, but the effort is worth it.
You can get a good return on your investment, primarily if you have invested in the right buildings and the correct location.
To remain profitable, you must always keep monitoring the performance of your investment and make the necessary changes as the years go by.
Here are the best five ways that can help you increase profits from your property.
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Allow Pets
Many families love pets, but it is hard to get homes or houses that are pet-friendly. Some landlords also don’t allow pets on their property. You can take advantage of this by allowing families to keep pets on your property and, secondly, by making your property pet-friendly. You can inquire from your tenants about those who want to own pets, then carry out modifications on your property to allow pets.
If possible, you can even construct for them the pet houses. After doing all these, you must come up with rules and also an increase in rent. You can also treat the pet rent separately from the usual house rent, and this will be an additional income on your property. However, remember that emotional support animals and service animals aren’t pets, and the law doesn’t allow charging pet rents on them.
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Increasing The Rent
Increasing the rent is the easiest way to increase your profits. As the years go by, the market value on investment properties will increase, so do the expenses to service them. So, you must increase your rent to ensure your investment remains profitable.
The trick is to increase the rent such that your profits will increase. The best way to do this is to include a clause on rental increment in your lease or tenancy agreement. This way, your tenants will expect the increments, and you’ll not face any legal challenges.
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Providing Additional Services
If you own a large residential estate or a single property, but with many families, you can think of offering them additional services that can increase your profits. For example, you can offer them internet connectivity (Wi-Fi), charge them for their use, or install a coin-operated service like laundry and a dryer. The number of laundry units you install will depend on the number of families living in your property.
On average, you can earn anywhere between $50 to $125 per unit. If you don’t want to buy the machines, you can lease them through leading appliance companies and share them with them. Just think of any service that your tenants may need and make it available for them. Apart from earning from these extra services, they will also make your apartment more appealing to tenants.
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Use technology In Managing Your Property
As a landlord, you may not have to deal with your tenants directly. Your first option is to employ agents to help manage your property and even follow up on rent collection issues. Although hiring such agents can cost a lot of money and may reduce your profits.
To ensure you don’t spend a high amount on agents, you can also look into using landlord software to manage your properties. This will free your time so you can concentrate on other things that matter most.
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Keep Your Property In Good Condition
Though there are some minor repairs your tenant can undertake, there are some maintenance chores that you should undertake regularly. For example, you must always clear the gutters, service the AC systems, check the sump pumps, and ensure the drainage system functions as expected.
Carrying out these maintenance activities will give you a reason to increase the rent, but they will also increase your property’s lifespan.
To Wrap It Up
Investing in real estate is a lucrative business, but it also has its challenges. You may have acquired the property through a mortgage you have to repay. It won’t be easy to service this mortgage if you aren’t making a good profit from the property. Following the above tips can help you maximize your earnings so you can repay the mortgage with ease.
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