Investing in real estate can mean big profits, if it's done well. Many people jump into the real estate business, only to find themselves overwhelmed by the work and not making the money they had originally dreamed of. Check out these simple investment strategies for landlords to help boost your real estate income.
The popularity of online video has been exponentially rising and will continue to do so in the future. By recording a quick, two-minute or less video introducing yourself, walking through your property, and explaining some features, people are more likely to notice and pay attention to your rental property. Best of all, you can shoot high-quality video with the smart phone you've already got in your pocket, and most computers come loaded with an easy-to-use video editing platform (Windows Movie Maker, Apple iMovie, etc.), so all it takes is the time you're willing to spend!
Many landlords rush the acceptance process, hoping to get someone into their property and make money quickly. Don't do this. When a prospective tenant submits an application to you, take the time to look it over. Contact their previous landlords to see about potential problems that might arise if you accept the tenant. Check up with their current employer to make sure that they are actually employed and making enough to pay their bills. By taking these simple screening steps, you'll be able to select better tenants and not have to deal with missed rent payments or other problems in the future.
Establish relationships with tenants
After a tenant moves in, check in with them to see how everything went. Make sure they've got all the information they need about your property and ask if they have any further questions. Help them to feel welcome in their new space. Establishing relations with your tenants will make them more comfortable while living in your property, and more likely to renew lease agreements and keep the property in good shape.
Know your plans
When purchasing a new property, know what you plan to do with it before signing any lines or spending any money. Are you buying the property to fix it up and sell it in the near future? Do you plan to rent it out and establish a steady stream of passive income? How much money are you going to put into the property, and how much will the return be? Answering these questions before buying a property will help to alleviate stress down the road and give you a sense of confidence in your purchase.
Design incentive plans to keep your tenants happy. Many landlords offer a free months' rent with a lease renewal. Some have raffles, where tenants are given opportunities to win a TV or some new housewares. Invest a small amount of money in an incentive program, and tenants will be more excited about paying their bills on time and renewing leases to stay in your property for longer times.
These are just a few simple investment strategies for landlords. Implement these into your business and watch your profits grow!