One great way you can create some investment opportunities for yourself is by having a rental property. However, if you’re not smart and careful with this property, you could end up seeing only minimal profits from all your hard work. Luckily, there are a few things you can do that will help you make more money off of this investment and make it more worth your while as an investment opportunity. To show you how, here are three tips for making the most off of your rental property.
Do As Much Of The Work Yourself As Possible
To immediately be able to make a profit off of your rental property, you might want to consider buying a rental that needs a bit of work and putting some sweat equity into it. After you’ve done this, you’ll be able to charge more for the rent and absolutely cover your costs. In addition to this, Kelly Gurnett, a contributor to the Penny Hoarder, advises that you do any maintenance work or repairs on your own, if possible. By doing this, you’ll be able to save the money that you otherwise would have spent on hiring a professional. While you’ll likely have to hire someone to do the work for some projects, doing some of the upgrades yourself may prove to be great for your bottom line.
Minimize Vacancy Time
Once your property is ready for tenants, it’s crucial that you get someone in there as soon as possible. Without rent coming in on that property, you’re going to be footing the entire bill on your own. But by minimizing vacancy time, you’ll ensure that some money is always coming in. According to Blake Hilgemann, a contributor to Time Money, you should also try to minimize turnover for your property. If you find tenants who take care of the property and pay their rent on time, do whatever you can to keep them in your rental so you can save money on finding new tenants.
Offer Additional Services
If you’re looking for ways that you can justify charging your tenants more for their rent, Brian Davis, a contributor to Bigger Pockets, recommends seeing if you can offer any additional services. Depending on how much time and money you’re willing to invest in order to get more profit, you may want to offer services like additional parking or storage, landscaping or fully furnished units, or even things like dog walking, babysitting, or concierge services. Just be sure whatever you’re offering is going to be financially feasible for you to take on and still make a decent profit off of it.
If you have a rental property, consider using the tips mentioned above to help you find the best ways to make the most from this investment.