There are record profits being made off of rentals lately due to the housing crisis.
Many landlords are seeing great returns on their investment and hard work. There is one thing to consider even during this boom time. Is there a way to increase those profits instead of assuming that you are maxed out?
Many landlords are leaving money on the table because their operation isn’t as efficient as they think it is. There are a lot of areas that are ripe to make them more efficient and effective which will help you to keep more money in your pocket.
In this article, we will go over some of the ways to increase your profits.
1 – Get good tenants
It is easy to find renters for any type of property. The trick is finding good tenants that respect the property, pay on time, and stay for many years. When you have those tenants it is wise to do everything you can to keep them from leaving when the lease is over.
It costs money to have bad tenants and it even costs money to have to look for new ones every year. You’ll need to have a system to find the good tenants out there and then screen the applicants to make sure that they will be what you hope they are.
A good way to find those tenants is to hire landlord property management Toronto GTA to find tenants for you. They have the resources to recruit the best tenants and do a thorough screening of their backgrounds.
You may go through Furnished Rentals: How to Find the Perfect Apartment
2 – Keep the property maintained
Landlords are known to neglect their properties to save money in the short term. They are hesitant to spend money to fix little problems because it eats into their monthly profits. However, putting off any maintenance is going to cost you much more money later down the line.
It is always cheaper to spend a little bit now so you don’t have to spend so much later. Not only are you going to save money by avoiding major repairs, but you are also able to keep tenants longer.
Tenants that are always frustrated by problems in their property that go neglected are going to find another place when the lease is over and this costs you money.
3 – Furnish it
Give your tenants added value and you can charge more for rent. One surefire way to do this is to rent out the apartment with furnishings. This is going to save the tenants a lot of money so it is worth it to them to pay a little extra to have furniture.
You don’t need to provide every piece of furniture they could need, but make sure to at least have a couch and chairs for the living room and a table for the kitchen.
These are items that people will want to wait until they buy their own home to purchase instead of for a rental.