Investment is a hot topic now. With a considerable amount of cash, and smart investment decisions, you
can earn several times of that initial investment amount. One type of investment in the real estate
industry is in the form of rental properties. It is the form of real estate investment wherein investors buy
living spaces (condominium unit, townhouse, etc.) ideally during their construction phase and, once
finished, lease them out to tenants. It is an attractive investment due to its simplicity, reduced risk, and
the stable inflow of cash. So, if you are considering this type of investment, how can you maximize
returns and make sure you are getting the most out of it?
First, you must determine the best rental price for your property. In condominium units, there are
usually property managers that work for the property developer that would normally set the rental
prices. However, if you consider investing in other properties, such as a house--giving you the flexibility
to set the price, you might consider other alternatives. One way is to canvass the prices of other
properties being leased out in nearby areas. Alternatively, you can seek professional help through
companies that can assist you in determining rental prices.
Another way to increase your returns is to develop and properly maintain your space. Keeping the
property attractive and conducive to living is a sure way to make tenants willing to pay higher. It doesn't
have to be too costly to make these improvements. Start with small developments that greatly affect
the property prices, such as the kitchen and bathrooms. Little changes like better lightning, newly
painted walls, and pest controls would make your place more inviting to prospecting occupants.
You also have to be wary when choosing your tenants. Look for quality occupants that would stay for a
longer term. Also, look for tenants who are mindful of your property. With this, you avoid having to do
regular repairs that would cost you a lot in the longer run. Tenants who choose to agree to have a
prolonged stay also relieve the cost of advertising to look for new tenants.
Lastly, make sure to decrease the turnover of occupancy in your property. Vacancy means that you
would receive zero cash flow while the space is empty. As soon as your tenant shows interest to leave,
start looking for new occupants so you don't spend much time getting zero cash flows.
Knowing how to manage your investment property well can give you maximum profit gains. Maintain
your property well lessens your cost in the long run. Having high quality tenants that value your
property the same way as you reduces the need to do regular fixes and avoids non-occupancy of your
space. In the end, happy tenants mean higher returns to you.