Top 3 Ways to Make More Money on Your Rental Properties
Monday, August 28, 2017, 6:00 AM | Leave Comment
Despite the popular myth, making money out of your rental properties is not a risky business.
There are several ways in which you can optimise and earn more money from your rental properties. Renting a flat or renting a house could end up in several financial loopholes and in most cases a loss to the landlord, usually in the form of tax burdens.
Here are the top three ways in which you can make more money on your rental properties.
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Minimise vacancy
In simpler words, reduce the time period for which the property remains vacant. The best way of doing this is having long-term tenants.
The benefits of long-term tenants are plenty. A friendly relationship with the tenants is beneficial, as that would ensure a longer stay, and they would give a positive feedback when they vacate.
Another viable tactic is to always stay alerted and proactive by posting ads for your property the minute you learn that your tenant will be moving out. A platform like NestAway provides a huge boost for looking out for new tenants.
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Strategize the tenure period
The rent can be incremented strategically in a timely manner. Provide a clear detail to the tenants regarding the other charges, such as additional maintenance or late fee.
The tenants have signed a binding contract, and they have agreed to the terms of use entailing an added fee for late payments, and you should take advantage of that agreement.
Collecting late fees is by no means a pleasant task, yet if you allow the tenants to be late on their rent and pay it without the accompanying fees, you are not only leaving money on the table, but you are also setting the stage to be taken advantage of in the future.
Detail the tenant about the costs while renting the flat or the house. Explain everything to the tenant.
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Do your own maintenance and optimise on the bills
This might sound a bit silly, but the fact is this could save a huge amount of expenses on either side.
If you don’t mind putting in a little bit of elbow grease on a rental or spending money on maintenance, there are several everyday tasks which can be done personally.
Using solar power and sharing resources can reduce the bills. Even while absolutely necessary, hire someone you could trust and offer to assist in ways. This could be mundane, monotonous, and boring, but in a financial aspect, these chores could make a significant difference.
There are a lot of sites, blogs, and forums on the Internet that guide people with a lot of solutions to various ordinary problems; depending on the expertise, you can decide to make use of them.
These are only few amongst multiple other ways, depending on the place and profession of the tenant and considering various other factors, one may vary the methods.
There are pros and cons in every method, and it’s up to the landlord to decide which would suit his or her requirements.
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