Introduction
Renting out property is the easiest and safest way to earn passive income. It is common for investors often to treat rest as an essential source of income. The greatest quality of rent is that it can be adjusted according to inflation. Renting provides stable, consistent cash flow. Finding the right tenant is as important as ensuring the property isn’t being misused by the tenants. Keeping track of the damages and ensuring that rent is coming on time, are some basic things you’ve to keep in mind when renting out your townhouse. Now, we’ll further discuss how to maximize your townhouse rent income.
There are several ways you can maximize your rental income, but the following are some really easy and effective hacks which you can apply:
Adding multiple revenue streams
Adding several revenue streams is a very sly trick to maximize your rental income. Suppose you can an apartment in a gated community; you can add other sources of income. For example, you can try having cleaning services, gymnasiums, landscaping services, or other things such as installing CCTV cameras and having security services. This not only ensures extra income, but it also enhances the value of your property.
Reducing vacancy
Long term rental option has been running along time since ages, and that’s for a reason. The reason being, this option ensures continuous cash flow with the certainty of quite some time. Unlike short-term tenancy, this option has the potential to maximize your rent. If the tenants have to let go of your property at all, you still will have the time to advertise as soon as you get notified. It’s a win-win situation.
Clever pricing
If you can act slightly smart when pricing your property, you will face fewer hurdles and find the suitable tenant. Set the rent just right below the hundreds. We know how $1,254 looks better than $1,300. Pro tip – when pricing the property, make sure to take some percentage off it for maintenance. Suppose, somehow, the rooftop gets damaged. Who will pay for it? The tenant technically because you kept some percentage of the rent exactly for situations like this. It’s a win-win situation again.
Renting out is a business too.
The tenants are basically your clients. Make sure you don’t take that lightly. You have to keep your tenants satisfied and, at the same time, make sure that your pitch is convincing enough for your tenants. If at all, your target audience does not rent your apartment, word of mouth travels fast; there will be someone.
Someone probably recommended by your target audience who just might get interested in your property. You can do some little things here; you can decorate the property, making it look bright and colorful. Install some quirky furniture, and you can paint your property with nice soothing colors.
Maintaining the proper relationship.
It is essential to build a nice relationship with your tenant; however, you should not get too close. It is a very common mistake that new townhouse owners make. They often get too sentimental with their tenants. This sometimes leads to irregular payment of rent, damages being repaired solely by owners, and sometimes even not getting rent. This later will make you regret getting too close to a tenant as it can be hard to ask for the rent from a “friend.” It’s not like you should turn cold and strict with your tenant; you just have to have a little boundary set. For example, most of the time, the owners use this statement “who has to pay for roof repairs” in case of roof repairs. During that time, if you already have a good friendship with your owner, it becomes easier to deal with.
Verifying tenant background
It goes beyond discussing how important it is to do proper tenant screening before renting out a property. Yet, some owners make this mistake of not doing enough background checks before handing out the property keys. Make sure to do enough research and look into their backgrounds to ensure that they can afford the rent. Especially in long-term rental cases, it is important to make sure that they have the security deposit ready.
These were some basic and simple tricks to maximize your townhouse rental income. Also, having a good relationship with your tenant is vital, particularly when you are doing long-term rental. Therefore, it is also important to pick the right one for you.
