As a rental property owner, one of your top priorities is going to be ensuring that you get the most out of your property investment. This means that you need to take certain steps in order to achieve your goal. Understanding how to become a successful rental property owner can be a bit of a minefield, especially if you’re just starting out.
In this blog post, we’re going to have a look at what you can do in order to optimize your return on your rental property investment:
Find the Right Tenants
Finding the right tenants is one of the most important factors that you need to think about when renting out a property. Having good tenants that you know will pay the rent on time, look after the property as if it was their own, and rent long term will save you money in the long run.
Invest some time into looking for the right tenants instead of rushing to fill your vacancy by just accepting the first renters who show interest. If they don’t look good on paper, then they’re not likely to be good in reality. Things that you should think about include tenants’ ability to pay rent, their credit score, and references from previous landlords, as well as lifestyle factors such as if they want to bring pets with them, if they smoke, etc.
Research What Your Property Is Worth
If you want to make more money from your property, an obvious way to do this is to increase the price of your rent. However, you shouldn’t do this without reason. Instead, you should research what the fair market value for your property is, and if your asking price is below it, raise your rent to match it.
If you have work completed on the property such as refurbishments or expansions, it might be time to have a valuation completed again, as your property’s worth may have gone up.
Another important factor to note when considering changing your price is your tenants. As proven by the first point, your relationship with your tenants is essential to having a good experience with renting out your property. Try to be considerate and not raise the rent significantly at one time, as doing so could cause reliable tenants to search for cheaper options. If you decide it’s fair to raise your rent, give your tenants plenty of advance notice.
Looking after your investment is essential for your success. This means that you should always protect yourself as a landlord. You should make sure that your contract is legally binding and covers you from liability. (Have an attorney review your lease agreement if you don’t have the expertise yourself.) Having legal resources at hand in case of a legal dispute with tenants will also protect you, and landlord insurance can help cover costs such as damages to the property and unpaid rent.
Hire a Property Management Company
Hiring a property management company can not only take away the stress of looking after your properties full-time, it can also enable you to concentrate on investing in other places. A good property manager will help you find reliable tenants, decide on a fair rent price that will compensate you fairly according to market value while also treating tenants fairly, and protecting you from liability and legal issues.
By researching and understanding these four areas, you can improve your rental property management in simple ways and get the most out of your investment. You’ll find that as you maintain a good relationship with tenants while still charging a fair price and protecting yourself legally, and maybe even as you get the help of a property management company to cover all these areas, you’ll not only get a greater financial return on your investment, but you can also feel more confident in your renting experience.