Whether you’ve just purchased your first rental home or have years’ worth of rental experience, chances are you want to be profitable. However, this is much easier said than done. It takes a great deal of time, energy and commitment to obtain a solid understanding of the real estate industry.
If patience isn’t one of your virtues, there are several ways that you can increase the odds of gaining more profit. If you are new to the real estate industry or want your current rental homes to get more bang for their buck, be sure to try these helpful tips.
1 – Charge the Correct Amount of Rent
It may seem like a no-brainer, but deciding how much rent to charge requires a lot of thought and research. If you charge too much, you will scare off potential renters and be stuck with a vacant rental home for longer than expected. On the other hand, if you charge too little, then you will attract a type of renter that isn’t the perfect fit for what your rental unit has to offer. Neither of these options is optimal.
Before committing to a price, look up what other property owners in the area are charging for rent. If there aren’t any rental homes in the area, you can hire a professional team to help you with pricing or you can click here for more info on what other property owners are charging in the Toronto area.
2 – Avoid Having a Vacant Rental Home
A rental home will only generate profit if it has renters living in it. This is the opposite of what most property owners aim for. With this in mind, you can see why it’s important to keep your rental homes occupied at all times. To minimize the number of vacancies, you should always keep an eye out for long term renters.
3 – Be Willing To “Do It Yourself”
Property owners that have a “DIY” attitude can earn even more profit off of their rental homes. This is because they can take care of minor repairs themselves, as opposed to paying contractors to deal with them. Some examples of DIY projects that can be done around a rental home are:
Painting – It never hurts to apply a fresh coat of paint to a rental home. Not only can it increase the value of the property, but it can also give it a fresh, modern aesthetic.
Yard Work – Does your rental home have a front or back yard? If so, you can save on monthly expenses by taking care of the groundskeeping at your rental homes. Start charging the batteries for the weed-whacker!
Minor Renovations – Renters always appreciate the small, fine details in a rental property. Property owners should take the time to make minor renovations in places like the kitchen, bathroom and bedrooms.
Earning a bundle off of your rental homes is no walk in the park. Thankfully, by following these simple tips, you can make more off of your rental homes with ease.