How To Make Being A Landlord Truly Lucrative
As a landlord, you are there to offer your property to those who can rent it. While it may be a way of providing housing for those who need it, it’s also a business. If you’re not making enough money from it, it can go belly up, which can kick your tenants out of their homes just as easily as it can cost you. As such, it’s always worth looking at whether or not you’re making as much money as you should, from it.
Get your rent pricing right
First of all, you have to consider how much you are renting your property out there. There is some contention in the property market, as rents have been driving upwards recently but, as a landlord, you have to deal with the reality that costs of living are getting higher, too. If you’re not raising your rent, then you are losing money in real terms. Take a look at the local market to ensure that your rental rates are competitive but without going too far below the average. Keep an eye on market trends so you can choose moments to strategically raise the rent.
Upgrade the property
Increasing the value of your rental property involves strategic upgrades and maintenance. Start by enhancing curb appeal with landscaping, fresh paint, and clean pathways. Inside, focus on modernizing key areas like the kitchen and bathrooms, which significantly impact property value. Upgrading appliances, fixtures, and flooring can attract higher-paying tenants. Ensure the property is well-maintained with regular inspections and prompt repairs. Adding amenities such as in-unit laundry, energy-efficient windows, or smart home technology can also boost value. Finally, you can consider offering flexible lease terms and maintaining a responsive management style to keep tenants satisfied and reduce vacancy rates.
Have experts manage it for you
Being a landlord is a full-time job, especially if you have multiple properties. However, if you’re trying to treat it as a side hustle while still maintaining a career, you can find yourself falling far behind, not providing maintenance, and not responding quickly enough to tenant needs, which can result in them leaving. Working with real estate agents who help with property management can take the load off your shoulders. It can also ensure that you’re able to be the responsive landlord who addresses their needs when you have to.
Consider offering extra services
If you’re not able to get any more money out of your property by adjusting rent, improving the value of the property, or reducing vacancies as much as possible, then you might want to look at other services you may be able to offer tenants, at a price. For instance, you can charge them to make use of existing laundry facilities, especially if they are in a building that you own, rather than in their rental space. You may also be able to offer pet-friendly rental options or parking spaces for an added fee. Some landlords charge for exterior maintenance, as well, such as gardening services.
The tips above are just some of the ways you can maximize your rental value. Do your own research to find more opportunities to make money.