Updated November 25, 2020
You may be ready to invest in rental properties, but it’s important to consider how risky this venture can be. If you’re looking for an easy option, property investments may not be for you, but if you’re ready to roll up your sleeves and work hard, here are some tips for how to make even more money when you decide to take on property investment.
Stay Away from Fixer-Uppers
While it may seem like a good idea to get more money faster, taking on a fixer-upper almost always costs more than it seems like it will. So, unless you’ve flipped properties before or you’re a contractor yourself, you’ll want to shy away from those options that seem like a dream but turn out to be a money pit.
Instead, why not look for a property that is priced below the market and only requires a few minor fixes? This way, you’ll make more without sinking lots of your own money into the process.
Find Long-term Tenants
Instead of dealing with new people constantly and a high turnover rate that will leave your property empty often, try to find long-term tenants who want to be in their home for several years or more. This will help you make consistent money from your property instead of always scrambling to find new tenants.
Enforce Your Late Fees
While you may not like being this person, it’s crucial to enforce late fees, so you don’t end up taking on the costs when a tenant pays late. Late fees should kick in immediately, and if tenants are still not responsive, it’s essential to start filing eviction paperwork right away.
Offer Additional Services
Those residents living in single-family homes might be interested in having a gardener or housecleaner come by once a week to spruce up the place. When you have this person on the payroll, it will also increase revenue for you from another source. If you manage a larger building, consider putting in a coin-operated laundry service or another way to make additional money.
Investing in rental properties can be extremely lucrative, especially if you know where to look for the best money-making opportunities. Your residents will be happy, and you will be able to make more if you are consistent as well as fair.