When buying a investment property it is important that you consider, not only ways you can manufacture growth into that property, but also the best ways you can generate cash flow from that property, and how to get the best return on investment.
Todays article discusses 4 easy ways to get the best rental return from your investment property.
Renovating is a good way to help with rent return and help your property generate more cash flow.
This can be done simply, or it can be a more major project.
By making a few small changes and upgrades you could be adding much needed value to your property.
The value you add may be as simple as a coat of paint or installing ceiling fans. These small changes can drastically improve the property’s ability to be tenanted.
By presenting your investment property in one way or another it will also affect the caliber of tenants that are interested in that property.
For example, if you leave a 40-year-old property in original condition, it is going to attract a different quality of tenant, as opposed to if you modernize the property slightly, to attract a different class of tenants.
- Have A Good Property Manager
There is nothing more important when owning an investment property than having a great property manager.
A good property manager will help advertise your property in a favorable way. They will also provide services above and beyond the norm so as to attract a good tenant, and keep that tenant in place long term.
- Watch Vacancy Rate Trends
It is important when buying an investment property that you keep an eye out for the market trends. You want to be advertising the property in peak season to get the most out of the rent return.
Whether it be in a coastal town, advertising at the beginning of summer is going to help you get more rent for that period. If you live near a university, advertise at the beginning of semesters to get the highest rental amount.
Being aware of these trends is going to ensure that you, as an investor, are making the most of the property and generating cash flow to the highest ability for that property.
You don’t want your property to be vacant for any more than 2-6 weeks per year, and where possible get extended leases signed from good tenants so you never have the property vacant.
- Advertise Well
This is the “cherry on top of the cake” and ties each of the above factors together.
If you have renovated your investment, got a good property manager, and watched trends to ensure you know the best time to have your rental property on the market, it only makes sense that these things will help with the way your property is advertised.
The photos are important, the timing is important, the placement of the advertisement is important. Making sure your property is advertised in line with market value is also important.
Making sure your property has the highest level of exposure to the RIGHT market is the best way to have the property tenanted fast, and for a good price.
It is no pint listing it online for $600 per week to attract a higher class of tenant, when the property is only worth $450 per week.
The faster your property is tenanted the less money you have to spend on marketing and advertising and the less time your property is left vacant. Advertising to the right target market for your property type is imperative.
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