Investing in real estate is always a good idea. In times of uncertainty like the one we’re in right now, it offers a great way to protect your money and even grow it considerably. Buying rentals is a sure way to make money in any economy. Being a landlord is not easy, though, and many make mistakes that cost them money.
There are a number of ways to make sure that you are making as much money as possible from your investment so you know that you aren’t leaving money on the table. This will make sure that you are able to grow when you want and aren’t taking a long time to recoup your money from the investment. In this article, we will go over several ways to increase your revenue as a landlord.
1 – Screen all tenants
One of the most costly things that can happen to a landlord is to have a tenant that doesn’t pay, ruins the property, and needs to be evicted. It costs thousands in damage, lawyer fees, and court costs to get them out of the house, not to mention the time it takes. Then, you are losing money during the period when they are not paying and to fix the place up to get ready to rent.
This can all be avoided when you are screening your tenants so you get responsible people in your property that pay on time and respect it. There are rental property management companies in north York that will do a lot of different services for you including screening tenants and processing rental payments for you.
It’s better to leave this to the professionals since they have the tools and the expertise to find the right tenants. This ensures that you have responsible tenants and ones that will likely stay for years which also helps you make more money since it costs a lot to always look for tenants and get properties ready to rent.
2 – Reinvest to grow
Many landlords get rich because they are always growing their company. When you have multiple units then you can scale up your revenue quickly and in a big way. You should always try to reinvest your income from one property to buy more.
As your property grows in value, you can use this equity to buy another property, fix it up, and rent it out so you have effectively doubled revenue or even possibly tripled it. Focus on growth for the first five years or so rather than profits so you can make more money later.
3 – Add value
You can ask for more than the average rent price when you are adding value for your tenants. For instance, offering a furnished unit is going to save the tenant a lot of money by not needing to buy furniture. This means that they will be willing to pay more for rent for a furnished apartment. Offering a parking space will also increase the rent that tenants are willing to pay.