If you are looking for a good investment portfolio, you might want to consider real property as a great option if you are not into trading stocks. The market for real properties today is drastically growing and the demand for spaces and accommodation is increasing. And apart from capital appreciation, you can actually do many things with your property to earn more. For instance, you can have your own condo unit rented so you will have rental earnings every month. Let me share with you the 4 effective ways to maximize your rental earnings today.
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The first thing you have to do is to decrease the vacancies. Find a long-term tenant who can stay for years so you would not have to experience a vacancy every now and then. The gap between the date of the move out of your last tenant and the move in date of your next is significant, regardless of how many days it is. Since you are earning from renting your property, you want each day to be paid but how will you maximize your rental income if there is frequent vacancy? You may be challenged to look for a long-term occupant first, yet, the success feels good when you find one.
Lower priced rental properties can attract tenants but that doesn’t mean you will price your property lower than its value. Another way you can increase your rental earnings is through strategically increasing your rent. Increasing the rent on your long-term tenants is not a bad thing. As a matter of fact, this is a way to balance everything about your condo unit knowing its value and the rate of competition outside. Again, it’s okay to tell your tenants that you are increasing your rent but give them notice so they won’t be shocked.
Attached to minimizing vacancy is looking for quality tenants who can take care of your property. With quality tenants, you will be able to reduce the cost of repairing your unit. You will avoid repainting the walls, replacing the floorings, repairing the doors and windows and many more. This just means that when you have occupants who take care of your property like it’s their own, your turnover cost will be lower when the new tenants come forward.
When you are a landlord, you make the rules, especially on the payment system. Do not let your tenants decide whether they are going to pay you or not. Business doesn’t work that way. Give them the exact amount of the rent and the date they need to deposit the money to your bank account. Implement late fees accordingly and discuss it with your tenants before they start moving in. Put this all in writing so to give evidence that the occupants agree with your rules and they need to abide no matter what.