Whatever rental property you have right now, for sure, it required years’ worth of savings before you can afford to buy it. For some, their rental property caused them to make drastic changes in their lives, which probably included letting go of their guilty pleasures or sacrificing travel plans with friends or families. While it’s already common knowledge that rental properties are excellent investments, not everyone knows that there are several ways to earn profit from it. You don’t have to wait for decades or even years just to get your investment back. With the right strategies, you can even earn more than what you’ve invested.
Renting out properties is no longer new. Many property owners are already opening their doors to guests and tourists for a fee. However, because of the stiff competition, your rental property could end up being a “me too” business, which could mean losing your customers – and without customers, there is no profit. You’ll even lose money instead of earning.
Make sure that your rental property gets the most profits by following the tips below:
- Manage your property yourself: Just because you don’t have any professional background or training in property management doesn’t mean that you have to let other people handle the job. Hiring a professional property manager can have a significant impact on your profit. You’ll need to pay for their services and benefits (if they’re working full-time) and give them a certain amount of money from your total profit. Instead of earning profit to spend on your future renovations and added utilities, you’ll end up spending just to pay for someone else’s service.
Generally, professional property managers will work by receiving customers’ calls, booking them for accommodation, and providing answers to their queries. These are simple tasks that you can do anywhere anytime just as long as you have stable Internet and cell service.
- Do as much maintenance as you can: A property rental isn’t a one-time investment. You have to consistently check, assess problems, and provide solutions in order to maintain its condition. Aside from checking the infrastructure of the property, you should also strive to maintain its cleanliness. This is something that you should do on your own if you want to maximize profit. Most maintenance shops charge around $50 to $100 per hour for their services.
If you own a house, doing maintenance in your rental property might come off easy. Usually, you’ll just need to repair leaking pipes, adjust squeaky door knobs and hinges, and fix cupboards and drawers that don’t close completely – chores that you normally do in your own home. Fixing small problems in your rental property can help you save thousands of dollars. Plus, you’ll also improve your skills as a handyman!
- Avoid vacancies: Having guests is one way of maximizing profits from your rental property. However, with the number of properties for rent today, enticing guests to choose you might be easier said than done. You might even have to compete with influencers in the industry just to let your target audience know that your property is available for renting out.
You can promote your rental property by using different kinds of marketing strategies. Be open mind to learn and apply new strategies in managing your business. Check some online sources, such as bestrealestatedirectory.com, that offer tips and tricks to maximize your profit. There are also online sites that allow you to list your rental property for better visibility and audience reach. You can also promote your rental property through social media marketing, on your own website, or through paid advertisement in local newspapers, TV ads, and billboards.
- Add a coin-operated laundry: Guests aren’t only considering the softness of the beds or the space in the rooms whenever they’re looking for an accommodation. Most of the time, they prioritize the convenience and accessibility.
To ensure that your property rental fits the bill, add a coin-operated laundry. This simple but very useful amenity in your rental property could be a selling point for your guests because they can save their time, money, and energy from going to a Laundromat that could be blocks away from the accommodation. A coin-operated Laundromat is essential to guests especially if they’re planning to stay in your rental property for weeks. This can improve their user experience, which can result in happy and satisfied guests!
- Implement pet fees: People love their pets and treat them as family members. If you want to earn profit from pet owners, allow them to bring their pets with them but for a fee. For instance, you can charge $25 for each pet without requiring any additional pet deposit upon checking in. You can also set up terms and conditions for pets so that you can safeguard your property and valuables. Just make sure that this is thoroughly discussed with the pet owner.
However, if you don’t have any plans in allowing pets in your rental property, keep this mind: guests can pick any rental property for their accommodation, but most of them will prefer sleeping in the middle of the street with their pets than stay in any five-star hotel without it. Saying “no” to pet owners and their furry friends is a lost opportunity for your property rental business.
- Rent an in-demand amenity: Your guests are the life and blood of your property rental business. Without them, you’ll never earn profit. If you want them to choose your rental property over the competition, satisfy them by providing what they need – like a parking spot during peak season. If your rental property has limited lot area, opt to rent out a parking spot adjacent or near your location. This option can be very useful during the holidays or if your rental property is located near tourist spots.
Change Is Inevitable
Just like any other niche or industry in the business arena, you should continually strive to improve your offerings. No matter how spacious, elegant, and well-furnished your property rental is, if guests don’t notice any improvement since day one, don’t expect that your business will thrive and grow over time. You should always assess your business while looking into different internal and external factors, determine which needs to be improved, and immediately act on it. The more flexible and adaptive a business is, the better are your chances for success.