Investing in the real estate rental market is one of the most stable ways to earn an income right now. It is possible to see strong and steady returns on your investments with often minimal effort on your part, which is why it is such an attractive prospect for many.
If you have recently invested in real estate and you are looking at ways to increase your profits even further, here are a few things you might want to do:
Raise the rent
Itâs an obvious point, but if you raise the rent, you can instantly increase your income. Of course, you need to be fair and you should only raise the rent when the market has changed and you can command more money for that specific property in that specific location, but that is why it is so important you review all of the rents for all of your real estate properties at least once each year. You need to know your propertiesâ worth.
Buy fixtures and fittings in bulk
If you own multiple rental properties, you will need to keep them in a good state of repair to comply with regulations and ensure you can maximize your rental yield. This can get expensive, but one thing you can do to lower costs and increase profits is to buy things like a new intercom for apartment buildings or new kitchen sinks in bulk., When you do this, you will more often than not, be able to access a significant discount which will help you to turn over more money at the end of the year.
Install additional moneymakers
If, for example, you own an apartment complex or a multiplex or any real estate that offers multiple occupancy installing extra moneymakers such as an onsite laundry facility, which is operated by coins, for example, an ice machine, beverage vendors, and things like that, can give you an additional income without very much additional outlay, and although it wonât earn you as much as the buildings themselves, you will be surprised at just how much you can earn by doing this.
Build relationships with a contractor
If you can find a reliable contractor, do what you can to build a strong relationship with him and his team, and ideally make him your exclusive contractor for any work that needs doing. If you can come to this kind of arrangement, then chances are you will be able to negotiate a much better deal for all of the maintenance and repair work you need to do over the years, saving your potentially tens of thousands of dollars in the process, and guaranteeing the contractor plenty of work into the bargain too.
Accept pets
If you accept pets in your properties, you can often charge a premium for doing so, which means you can earn more without any real effort on your part at all, and provide homes for people who have animals in their lives too.
As you can see, there are numerous things you can do to increase real estate rental profits, all that remains is to implement the above strategies and start reaping the rewards.
