Running property business means you have asset to maximise in every possible way. Your property is your asset. However, your tenant is too. That’s why, optimising the return of your property investing can be done by maximising your rent.
The main goal why you choose to rent out your property is to gain financial freedom. Of course, it can’t happen in a short span.
It may take years before you reach that stage. However, renting out your property at least can give you stability of steady income each month as long as the lease allows you.
Even though you have already steady income from the rent you receive from your tenants monthly, you still can maximise it.
Strategies to optimise your property rent
First thing first, you need to know that in handling rental property you will need property manager.
Not only they can maintain physical condition of your property, they can also maintain your cash flow by handling the tenants well. Thus, hiring property manager can benefit you even if you have to pay extra.
So below are some strategies to optimise the return of your rental property you can take advantages of.
First is to add some cosmetic touches to your property can lift the rent as well as the equity.
You see, it is common for the rent to increase in order to keep up with the inflation. However, if you increase the rent without giving any benefit to your tenants, your property will be less appealing. You will find more troubles from having to find tenants harder.
Thus, adding cosmetic touches such as paint, light fixtures, rug, and some simple elements can refresh the look of your property. Thus. You can boost up your cash flow.
Commit to longer leases is more recommended. You see, short leases like 6 months means you have two period of vacancy each year. It disadvantages you as an investor because you need to find new tenant twice harder within short amount of time. Thus, it is recommended to set longer lease at least for 12 months.
This means you have less interruption to the cash flow. The vacancy period is also less.
Next is to try some garden maintenance.
This seems like a simple plan but it can work. In fact, it can solve two problems. First, you can solve the problem of neglected outdoors it will look more appealing and well managed. Second, you will benefit from higher market rent especially with a tax deductible expense.
You don’t need to spend much money for garden maintenance. You only need to focus how to make it look neat and appealing, far from looking neglected.
Then, consider allowing your tenants to keep their pets. The number of pet owners is increasing and it means you can take a chance on it.
Most pet owners are willing to pay more as long as you allow them to keep their pet that they have considered as family member. Besides, pet owners usually prefer long lease.
They also tend to be well-management so they can take care of your property like they own it.