Education and news for smart DIY landlords!
Are you making the most out of your real estate investment? While being a landlord is an awesome thing, only a few take advantage of the opportunities to maximize profits. This blog post offers nine useful tips to get your money flowing in the right direction.
Vacancy is one of a landlord’s nightmares. But the good news is that there are plenty of ways to avoid this. Start with what sets your rental apart from others. Is it your new renovations? Parking space? Security system? Also, keep your current tenants happy.
Tenants who don’t pay online can make tons of excuses like “It got lost in the mail,” or “I came to drop off the rent but you weren’t home.” Online rent payments offer no room for excuses. Software tools enable automated recurring payment setup.
Every landlord should prioritize preventive maintenance if they were to save more money in the long run. Leaks should be repaired right away. Old flooring and appliances should be replaced. Pests must be eliminated to avoid property damage.
Renovate your old rental to be able to charge more. Even on a tight budget, you can upgrade various aspects of your rental such as the cupboards, light fixtures, and molding. You can also increase the rent steadily each year. Make sure to inform your current tenants early.
Many landlords hand over the responsibility of maintenance and repairs to tenants. While you can certainly include in the lease the requirement to trim the lawn or clean the gutters, you might just end up dealing with more costly repairs due to neglect.
Your goal should always be to keep good tenants instead of repeatedly finding new ones. Landlords lose tenants in many ways. They don’t respond to requests in a timely manner. They allow the rental to deteriorate. They increase the rent dramatically.
Busy tenants can wash their clothes in a way that saves them time and effort. You can lease a few machines from a manufacturer or invest in your own if you can deal with maintenance and upfront costs. Detergents are also extra passive income.
Location is one factor that determines your return on investment. Look for neighborhoods with clean streets and businesses. Avoid those with multiple abandoned properties. It’s also easier to run your rental if you live nearby.
Landlords who put up pet-friendly rentals attract more tenants and are less likely to experience turnover (since not a lot of rentals allow pets). Just make sure to let in the right pets. Meet the animal before signing the lease. Charge a refundable pet deposit.
These small steps can make your rental property business more profitable. Remember that everything you do or fail to do for your rental affects your bottom line. While following the tips discussed, screen all tenants thoroughly. Landlord Prep will always be here to help you grow your earnings as a do-it-yourself landlord.
Want to be a successful landlord?
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