The rental property market is hot and only getting hotter. For many years, rent has been rising faster than income and other expenses in many areas. This makes the residential real estate market highly competitive, but also potentially very lucrative. If your investment property is going to stand out, you may have to make some improvements to make it more appealing to potential renters. Luckily, Your Family Finances has some tips and resources to make this a little easier.
Protecting Your Investment
No matter where you choose to buy, it’s crucial to protect yourself and your investment with the right business structure. There are four common structures, but many small business owners choose an LLC (limited liability company) because it is easy to establish, protects personal assets, and has tax advantages. However, if you’re unsure what type of structure to choose, work with a formation service. They can answer your questions and ensure that you get the right paperwork that your state requires submitted in a timely manner.
Understand the Rental Market
This might go without saying, but if you want to succeed in a business, you have to understand the business. What amenities do potential renters want and expect? If your property does not offer those, what would be the cost of adding them, factored against the added revenue you might bring in by making the property more appealing?
Also, do a bit of research on available rentals in your area to find out what the average rent is. Don’t be afraid to charge a bit more than average, especially if you’re providing additional amenities, but do use the average rent as a solid and reliable starting point.
You should also consider the difference between long term rentals and vacation home rentals. Depending on where your property is located, you may get more interest and more income out of a vacation rental. And the added benefit is that you can use the home yourself when it is not rented out.
Add Valuable Smart Home Features
incorporating smart home features can indeed make your rental property stand out in today’s competitive market. These tech enhancements not only improve the functionality and convenience of your property but also appeal to a growing number of tech-savvy tenants who value such amenities. Some popular smart home features to consider include smart thermostats, smart locks, smart lighting, and smart security systems.
Remember, while these upgrades can make your property more appealing and potentially increase rental income, they also represent an investment. So, it’s crucial to research what features are most in-demand in your specific market and balance potential returns with the upfront costs.
Get Noticed and Appeal to Renters
No matter how well-organized your property management business is on the back end, you need front-end appeal to attract enough renters to keep your properties occupied. Write down all of the selling points your property offers potential renters and organize them into a PDF that can be easily circulated. An infographic is a great way to convey this information. By creating infographics, you can highlight key upgrades in a visual manner.
It’s also a good idea to market your property via social media. Include high quality photos and detailed information on all the amenities provided. Additionally, make sure you provide contact information (preferably a number for calls and texts, as well as an email) and respond to queries as quickly as possible. Be courteous but professional in your correspondence. In regards to email, make sure you don’t miss any messages, too, since it’s easy for emails to accidentally get marked as spam.
Successfully Appealing to Renters
Becoming a successful property manager is not an easy task, especially when the market is competitive. No matter where you’re looking to invest, you have to find the right place, build the right structure, and market the property effectively to succeed. You can do this by researching the local rental market, adding popular smart home features, and registering an LLC to manage the property, and using social media to spread the word about the great rental property you have to offer.
You might also like:
- The Secret to Why Oceanfront Homes are a Great Investment
- How to Sell Your Home Quickly Without Sacrificing Profit
- Want a Sensational Side Hustle? Rent Vibrant Vacation Properties
- Top 5 Home Upgrades and Repairs Worth Your Money
- Investing in Real Estate? Make Sure You Choose Properties with High Potential
- Tips for Making Extra Income Through Real Estate
