Owning rental property can be a wonderfully lucrative endeavor, or it can be a financial sinkhole. Going the extra mile for your rentals will help you bring in those extra figures.
Avoid Vacancies (Like the Plague)
Okay, even though it’s obvious, keep your properties rented. Empty rentals don’t pay the mortgage, and they don’t get your tax deductions. When leases are approaching for renewal, ask your tenants a couple months in advance if they’re planning to resign. You’ll have plenty of preparation time if you need to start thinking about advertising again (or plenty of time to rejoice if your favorite reliable tenants are renewing).
One tactic that helps many rental properties is keeping their website up to date and full of relevant content. Consider writing a handful of blog posts for your website; with a bit of keyword research, you’ll start racking up tons of hits before you know it.
Max Your Tax Act
A little extra organization can go a long way when it comes to your business taxes. Keep and file all your receipts so you’ll have a perfect record of claimable expenses when the time comes. And, speaking of which, you need to do your preliminary homework and research what you’re able to claim, and which tax situations you’re eligible for.
If your property’s upkeep looks like it costs a certain amount, it probably does. You must keep the curb appeal sharp and alluring and the aesthetics current and on-trend—both inside and outside. The cabinets, appliances, and flooring all need to be up to par. Even minor upgrades can help nudge your rental to the next reasonable price point.
Choose Quality Renters
Easier said than done, sure, but crucial nonetheless. Ideal tenants will treat your property with respect—costing you less in repairs and maintenance. Tenants with positive references and rental history are more likely to stay around longer, therefore decreasing your risk of a vacancy. If you own a complex, signing one quality renter can lead to a flood of good tenants in the future as word begins to spread.
As a landlord, you’re essentially cultivating a micro-neighborhood. Don’t underestimate the power that can have, be it for better or worse. With all these factors in mind, it’s important to be well-informed of the rental application denial reasons and regulations you’re entitled to use when seeking new tenants. You can be picky as long as you aren’t violating the Fair Housing Act and related laws.
Trim Some Admin Fat
If you’re strapped for cash, maybe it’s time to reevaluate whether the rate you’re paying to an agency is worth it. There are a handful of online estate agency sites that cost far less than the industry standard. There are tradeoffs of course, but for many landlords, online agents make a lot of sense from a convenience standpoint. However, the more middlemen you can remove, the more revenue goes directly into your own pockets (just don’t get too greedy; agencies are still helpful).
Nickel and Dime
Pad your pockets by implementing small additional fees here and there. This can include penalties for late payments, additional rent for pets, coin-operated laundry facilities, termination fees, application fees, and charging a premium for tv or Wi-Fi services. Or, you can offer “free” perks (like laundry or Wi-Fi) to help fill the rentals, while building in the added cost to the rent.
With just a few of these tips, you’ll soon be squeezing out every extra ounce of potential revenue from your properties. Your rentals are your business, after all, and you’ve got to maximize your growth to scale your success. Work smarter, not harder! Implement those fees and extra services and watch the revenue pour in. Do as much of the administrative work as you can—without losing your mind. Be prepared for taxes and vacancies. Above everything, take every precaution to ensure that you’re signing only the best renters, and make sure you’re fully informed on the reasons you can legally deny an applicant.
The sum of your combined efforts might just leave you with a more efficient business with fatter pockets.
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