Making more money with your real estate investment requires a smart pricing strategy and a careful selection of tenants. Today, we’re sharing some of the things you can do to increase your income and minimize your expenses.
How to Make Money with a Rental Property: Price Competitively
You could try to charge the highest possible rent in an effort to earn more on your property, but it’s been my experience that it doesn’t exactly work that way. It’s actually better to charge a little bit less than the market rent. When you do this, all of the great tenants in the area will compete for your property. You’ll get a better pool of applicants, and you’ll rent the property faster. If you have a vacancy that’s more than 30 days long, you’ve lost an entire month of rent. Over the course of a year, you won’t be able to earn that back, even if you’re charging a little more every month.
How to Make Money with a Rental Property: Charge for Utilities
Another way to spread out your costs and earn more profit is to pass the cost of your utilities onto your tenants. They are the ones who are using the water and the electricity, so it’s not unfair to ask your tenants to pay for those utilities. We charge the tenants for utilities on most of our properties at Results Property Management.
How to Make Money with a Rental Property: Rigorous Screening
Have highly qualified, well-screened tenants in place. This is a good way to earn more because tenants who stay in a property longer will reduce your turnover costs. They also won’t be as tough on the property, and you won’t constantly need to make repairs.
Having a more competitive rent will help you achieve all of these goals.
If you have any questions about how to make money with rental properties, we’d be happy to tell you more. Please contact us at Results Property Management.