Is your rental property giving you the peace of mind about the future you were hoping for? Having a property to rent out is a great asset to have, but it does come with its challenges. And if not managed correctly it could cost you rather than helping you make the extra cash you were hoping to put away for your retirement. So, what’s the secret to getting it right?
Whether you’ve invested in an apartment building or simply have a small holiday getaway for tourists, there’s luckily a lot you can do to make this year a better one financially. Is it time to partner with property management companies that know the industry? Or is it tip number four’s dog walking that will finally give you the passive income you were hoping for. Let’s find out.
Consider Different Types of Rentals
First up, review how you’re marketing your rental space. Perhaps its location makes it more appropriate for a vacation spot, so you’re missing out on valuable income by only looking for long term renters.
At the very least, review your policy on lease agreements. In challenging economic times, not everyone feels comfortable committing to stay for a year, so allowing shorter lease periods could attract more business.
Rent Out Those Unused Spaces
Also review your entire property and identify unused areas that could be bringing in money. In busy cities, space is a valuable commodity, so someone could be willing to pay you for the privilege of using that area. Some practical examples:
- An unused parking could be someone’s daily parking spot near their office that’s just around the corner from your property. If you offer a good rate, drivers may prefer using it rather than traditional council parking.
- Garages and rooms not used by your tenants can be rented out to others in the neighbourhood as storage space.
Provide Those Valuable Extras
For the tenants themselves you can also earn a little more by offering unused spaces as storage they can rent. Perhaps they have excess furniture or winter clothing that make their rooms feel cramped and cluttered. Help them make better use of their environment and earn a little extra.
Offer a Service or Two
Add on services will also be welcomed be most tenants and you may even be able to increase your rates. Laundry services or at least a laundry room will always be a winner, since it makes life in your building much more convenient.
Alternatively, keep your rates as is, but offer to help with certain tasks that will improve tenants’ lives. A popular option is to provide dog walking services. You can hire a young person who will do it for a minimal fee or do it yourself—and get some exercise while earning some cash.
Many tenants will also appreciate housekeeping services, so they can spend less energy on looking after the place. And if the property has a garden, offer to do some landscaping on a regular basis for those who don’t have the time to do it themselves.
Allow What Others Don’t
To attract the tenants you want you should also find ways of distinguishing yourself from the rest or at the very least ensure you’re offering similar benefits to potential occupants. Have a look at what your competition offers and revise your policies if you realise you’re losing business because of them.
For example, more people have pets than a few years ago and they may want to bring them along, whether it’s on a holiday or when looking for an apartment to live in.
It may be wise to do some research to determine exactly what your target audience will appreciate and be willing to pay a little extra for. You can do a simple online poll on social media or ask existing customers and tenants for feedback. Discover your audience’s needs and cater for them to become the rental property of choice.
Consider Furnishing—at Least to Some Extent
Lastly, you can change what you’re offering if your research shows you your audience has unique needs. For example, instead of empty spaces a furnished or partly furnished Miami Shores apartments may be what someone needs who only plans to stay for a short time.
This is something you can discuss with the experts we mention in the next section.
Partner with an Expert
The rental property market can make you quite a few dollars but don’t underestimate what it takes to be a real success. As with any product, you need to make sure you’re seen by the right audience and that you beat others offering similar services. So, get an expert on your side, such as property management companies.
The added benefit of partnering with such a company is that you get advice about how to optimise your property AND end up having more income for a lot less effort. They do the hard work of handling aspects like:
- Payments that are in arrears
- Health and safety inspections
Leave the nitty gritty to them and simply enjoy the money coming in!
Ready to Make Big Bucks?
By owning a property you’re already on your way to make the money that will give you peace of mind about your financial future. Simply do it right by talking to some experts and improving one thing at a time. Soon your inbox will be flooded with applications.