Any time you make an investment, you do so with one thing in mind: getting as much of a return on that investment as you can. While any gain is a good thing, you always want to get the most out of your investment as you can. Your rental property investment is certainly no different. While you may already be making some money on your investment, wouldn’t it be great to find a way to increase your profits? Here are some tips about how to go about maximizing your rental property income.
Be Picky About Your Tenants
Your ultimate success or failure as a rental property owner will be decided by the people who rent off of you. The burden of vetting your renters lies solely on your shoulders. It’s imperative that you run thorough background checks on every person who fills out a rental application and do your due diligence on each person who shows an interest in renting from you. Require references from past landlords, verify employment, check into employment history and be sure that you’re renting only to people who you won’t have to spend time in court battling with later on.
A successful landlord is one that always knows what’s going on with his or her property. Many landlords only bother to inspect the properties they own when tenants are moving in or moving out, which often leaves them finding the need for extreme repairs. Performing regular inspections will not only help you remedy issues before they become high-cost problems, but it will also allow you to keep tenants happy by maintaining a good place for them to live.
Minimize Tenant Turnover
Not only do you want to minimize your repair costs, but you should also be looking for ways to minimize your amount of tenant turnover. Keeping your good tenants for longer periods of time can only benefit your bottom line. Offer incentives to them for prompt rent payment and maintaining your property. It will cost you less to reward them from time to time than it will have vacant properties. Vacant properties are a direct hit to your bottom line.
Ideally, you’re already making money from your rental property, but there’s always a way to increase your profits.