Tips For A Successful Rental Return Investment

Posted by on Jun 15, 2017 in Business, Tips | 0 comments

Tips For A Successful Rental Return Investment

A property investment involves buying a property such as condos, townhouses, lots, buildings and other types of real estate properties and have them rented as part of an investment. To make your property work for you and for you to reap profitable Rental Return Investment, take a look at these tips.

Look for long term renters

One way to get a sure return of investment on your property is to look avoid vacancy by accepting long term renters rather than those who will only stay for a month of two. Getting a steady monthly rent reduces the need for you to advertise the property to attract new tenants including the need to do some repairs or unit clean up after the last short term tenant left the property. The moment you get a long term renter, make the property more comfortable for him to encourage him to stay so for you to get more from your Rental Return Investment. It would also be best to invest in a property that has high demand for occupancy such as along stunning beaches in Thailand or areas that are frequented by those who want long term stay in a seemingly paradise location.

Gradually increase your rent

Before you increase your rent, make sure that your tenants understand the reason behind the increase. In as much as you want to keep them, you also have to increase the rent to keep up with HOA, utilities, taxes and maintenance for the property. Most renters would not really mind the minimal increase so long as it is clear to them why you need to increase the rent and also, moving to a new property would be more costly on their part so most often than not, they will prefer an increase rather than a one-time, high expense for moving.

Handle late fees properly

To get more Rental Return Investment, make sure that your tenants understand that you are bound by contract and this is business. Be stern but be humane in demanding late fees. You can provide extensions but demand for eviction when there is already a need for you to do so.