Think about the costs involved when someone moves out. You’ll need to advertise your property, clean it professionally, and make many repairs. The time it takes needs to be taken into consideration, too – as well as the impact of having an empty property. The longer your tenants stay with you, the better. That means providing excellent service, great value regarding rental price, and perfect behavior. It is inevitable that some people will move on – if they get a job in another state, for example. But the trick to keeping your tenants is to make the place irresistible and to get them to feel lucky they live there.
Hire an accountant
One of the major issues with real estate investment is that it leaves you open to a lot of tax payments. But it doesn’t have to be this way – particularly if you hire an accountant to help you reorganize your portfolio, so it is more tax efficient. They will teach you about the advantages of the 721 exchange to signing over your properties to your children. It means the IRS get less of your money, and your wealth can stay within your family even after you have gone.
Minimize vacancies
OK, so once you invest in property, you need to fill it. Every day that it remains empty means you are losing money – not just through rental, but also towards your mortgage. In fact, every month of no tenants can cost you over 8% of your annual revenue. It is critical, then, that you ensure your property is full at all times. Look for long-term tenants rather than offering short-term contracts. Keep turnaround to a minimum, too. The second you learn someone is moving out, get an ad in the paper, online, and even your local grocery store.
Keep turnover low
Think about the costs involved when someone moves out. You’ll need to advertise your property, clean it professionally, and make many repairs. The time it takes needs to be taken into consideration, too – as well as the impact of having an empty property. The longer your tenants stay with you, the better. That means providing excellent service, great value regarding rental price, and perfect behavior. It is inevitable that some people will move on – if they get a job in another state, for example. But the trick to keeping your tenants is to make the place irresistible and to get them to feel lucky they live there.
Watch your rental price
If you pitch your property too high, you’ll struggle to fill it – it’s as simple as that. Make sure you spend a lot of time researching rental prices and make sure yours is pitched correctly for the local market. When it comes to raising rents, it’s best to have a good reason. You might make some upgrades – installation of double glazing, for example. As long as the tenants feel they are getting something in return, they will be happier to pay more. Remember that it would depend on location as well. For instance, condos in Toronto would be more expensive than those in North York. That said, you’re looking to invest in a real estate property in the area, CondoWizard can help you out.
Be strict on late payments
If your tenant fails to pay, it leaves you in a tricky situation. You might not be able to pay your mortgage, which will mean charges being applied to your account. You may even face more serious issues in the long-term, such as a hit to your credit rating. It is essential that your tenants understand the importance of prompt payments. And, if they think they can get away with late payments without any charges, they will be more likely to do it again.
As you can see, there are several simple tactics you can use to get more from your property investments. Let us know your thoughts in the comments!
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