This is a collaborative post by Ellie Jo about making money with Rental Property.
Rental properties are one of the best money-making assets on the planet. When managed correctly, they can supplement your main career earnings in the short-term while the property itself can be sold at a later date too. As with any other investment, though, you must look to maximize the returns.
While there is no single right or wrong way to manage your investment property portfolio, the following tips will serve you well.
#1. Find the right rental property
Naturally, the first step on your checklist is to find the right property for your investment. The attributes you’ll look for could be vastly different to what you want from a home, and you must learn to think like a holidaymaker. The location is probably the most important feature of all.
It may also be worth considering a fixer-upper as this will allow you to get a cheaper deal. Besides, you’ll probably require a significant makeover anyway. When you pay less for the property itself, finding the capital for those updates will be easy. Moreover, you will be in a position to complete them all in one go.
#2. Advertise it well
A rental property is only as useful as its marketing strategy. Sadly, if the dwelling is empty, it cannot provide any return regardless of its quality. For starters, you should think about whether to use Airbnb, Vrbo, or Booking.com. You can use multiple platforms, but it will create more work.
Of course, marketing isn’t just about finding the right site. You should also focus on getting the best photographs. The power of recommendation is a powerful tool. As such, you may also want to consider the concept of letting an influencer use the property in return for content. They could drive plenty of bookings on your behalf.
#3. Keep your rental property protected
Given that you won’t be at the property, it’s only natural that you will worry about security. Using a rental property management service will allow you to keep the building well-protected. Crucially, the professional teams can also handle visitors and issues like cleaning the property.
Protecting the property from burglars or bad guests isn’t the only challenge. You must also undo the winter damage to the building itself. Otherwise, guests will be immensely unhappy and demand a refund or discount. If nothing else, protecting the vacation home from every angle will deliver peace of mind.
#4. Choose practical decor
Short-term rentals can yield far bigger revenue than traditional landlord services. However, you should note that the ongoing operational costs are far greater too. So, any steps that will reduce those expenses without reducing the likelihood of bookings or booking costs is vital.
A good bed is naturally one of the key factors. When searching mattress pads for my rental, it’s vital to look for durability. For decorative items, you should opt for items with a universal appeal over acquired tastes. It’s a wise move to think about energy-saving items too. Because guests will use more energy than they would at home.
#5. Add luxuries
A few luxury features can take the rental property to new heights. Aside from boosting the fees you can command, it makes the place far more attractive. When dealing with a villa, for example, you can install a swimming pool or jacuzzi to attract a whole new audience. Pool tables are another popular solution.
Once again, it’s imperative to think about what the tenant wants. After all, an apartment aimed at city break visitors and solo travelers won’t need those items. However, cooking equipment may be very useful in this situation. Many properties will benefit from garages or parking spaces too.
#6. Know your finances
Every decision relating to the property should focus on financial results. In truth, learning to treat it as an investment rather than a home is essential for success. Even if you plan to spend a week or two at the property each year. Hiring an accountant is one of the best ways to take charge. Do it ASAP.
Aside from handling the accounts and tax returns, they can offer advice on how to maximize your ROIs. When you do, it may be possible to think about the option of adding further rental homes. Whether they are all in the same city or spread out across the country, this portfolio can work wonders for your financial future.
The final word about rental property
If you think that managing rental properties is easy, you’re sorely mistaken. Nonetheless, when you implement a comprehensive strategy, it can deliver stunning results. You’ve got this!
Rachel is an Austin blogger, educator, mom, wife, young breast cancer survivor writing about health, saving money, and living a happy life in Austin, Texas.
Rachel has written for HuffPost and Hometalk and has been featured on KXAN, Studio 512, Fox 7 Austin, and CBS Austin.