If you have started a business venture in the arena of renting properties, you will likely have several goals on your agenda. You may genuinely have a passion for creating beautiful properties and supplying tenants with a home. Ultimately, though, the reason for entering this arena is to make money. So, finding ways to maximize your earnings must be a priority.
There are several ways to improve the venture and unlock increased profits. Try out some of the options below and you should see quick rewards.Â
Get Paid By Tenants On Time
First and foremost, you need to ensure that payments from tenants are reliable and punctual. Otherwise, you will encounter cash flow problems and may encounter issues like late payment fees of your own. Dedicated property management software serves many purposes, like marketing rental properties. But supporting quick payments is a top feature.
The software can help identify the best tenancy candidates. It can also handle documents like lease agreements. Crucially, it can manage payments and enable tenants to pay on autopilot. There’s also features to automate reminders and implement late charges if necessary.Â
Minimize Wait Times Between Tenants
As assets, rental properties generate a steady flow of income and healthy ROI. However, annual profits are diminished if there is a long gap between one tenant and the next. Finding tenants who will respect the property should reduce the challenges faced. Learning basic DIY or partnering with a reliable handyman could work well too. In truth, repairs should be minimal.
Effective marketing should see you find the next occupant quite quickly, not least in the current landscape. Of course, you can improve the situation further by finding tenants who stay in properties for longer periods. A low tenancy turnover rate means an income every month.
Reduce Financial Waste
When thinking about ways to boost the returns of your property business, it would be easy to focus solely on revenue. However, reduced financial waste can be equally impactful. Partnering with the right outsourced services is an essential first step. From estate agents to solicitors and surveyors, you should always seek value for money. Small savings on each expense soon add.
With this in mind, you must also look at the best deals on your office spaces, utilities, web hosting, and other expenses. You appreciate the importance of making capital work harder in your personal life. Do it in business. Using an accountant for tax will bring overall savings too.
Create New Revenue Streams
Reduced overheads that don’t harm your output certainly help. Still, increased earnings will always depend on revenue too. Breaking through the ceiling can be achieved in many ways. When looking for ideas that deliver quick returns, monetizing content and joining an affiliate program could be one of the best. The sooner you start, the sooner you'll benefit.
Aside from money gained via affiliate links and brand sponsorships, content grows brand awareness. It also highlights the personality of the people behind your landlord business. This can indirectly see future tenants approach your property business directly.
Grow Your PortfolioÂ
Secondary revenue streams help, but you must not lose sight of the fact that rental properties are the main source of revenue. Growing the portfolio may be more accessible than you think. You already have a track record thanks to the existing assets, which can help you borrow or gain funding. Not least when you use rent-to-own and other investment property moves.
It could also be worth looking at apartment blocks and other properties with multiple units housed. They are often seen as a smaller risk, which can see you add several assets to your portfolio in a very quick timeframe. The same candidates may apply for different units.
Optimize Pricing
Building a portfolio with more assets will inevitably give you a chance to earn more. However, getting more out of each asset is another equally powerful step. You should regularly review the pricing of your rentals against similar properties in the local area. It may be time to increase this slightly, thus saying competitively priced without selling yourself short.Â
It may also be possible to change prices to reflect demands in peak season. It can be a very useful method when opting for short-term leases. When you get the full benefit of each asset, the annual earnings will look far healthier. And it’ll maximize the benefits of portfolio growth.Â
Avoid Legal Action
To keep your earnings in a positive place, it’s also necessary to protect the business. When you face legal action, it causes major disruption. Even if you don’t directly encounter repercussions, your finances will suffer. Not least due to reputational damage and a loss of momentum. The best way to prevent this is to keep rental properties in good health. And treat tenants fairly.
This should remove any reason or opportunity for them to raise a complaint. It is probably worth taking photos before and after a tenancy agreement to protect yourself further. Any jobs you complete to support the tenant should be documented. Get confirmation that they’re happy too.
Do More With Properties
As a landlord, you will naturally focus on the immediate returns. However, properties that you own are huge assets. Bumping up the value with strategic upgrades can work wonders. For starters, it can boost the appeal to tenants and lead to increased rental costs. Adding value to the property also means you’ll fetch a higher price when you eventually come to sell.
Moreover, you can have the property revalued and borrow against the new valuation. This is a key step to freeing up more capital for the next property. When improvements align with trends impressing tenants, as well as your mid- and long-term goals, success is assured.
The Final Word
The property market is one of the most lucrative and can land you big returners, but it still requires a lot of hard work. When you combine effort with strategic decisions, your hopes of thriving as a landlord will look better than ever. You’ve got this.