2. Run Your Rental “Empire” Smarter
Owning rental property is about as common a business venture as you’ll find, but the fact is, many
landlords aren’t getting the full benefit out of their investments. There’s quite a learning curve involved
in taking on landlording, and so, it isn’t surprising if new landlords (and even experienced ones) have
significant room to improve their profit margins.
The number one reason that
property owners lose money on
leases is, harsh as it may
sound, that they lease to the
wrong people. Having a unit sit
empty can be frustrating, but
you’re much better off being
patient and upholding high
standards. You need to combine
two elements: an attractive
“deal” to draw in good tenants
and a thorough screening
process to keep out bad
tenants.
That means you make it clear that you will promptly respond to legitimate tenant complaints, make all
reasonable and necessary repairs, don’t invade tenants’ privacy, provide (if possible) a tenantonly
laundry facility and a game room/social lounge, and of course offer only well renovated and attractively
decorated units. You charge slightly more than your target ROI, then you grant a year'send discount for
paying rent on time or otherwise reward reliable, timely payers.
But also have strict rules for not disturbing other tenants, not destroying your property,
and as to late fees and eventual evictions. Also monitor tenants for illegal subletting and
other ploys. If all that sounds like work, don’t be afraid to hire a property manager: with
the right policies in place, you can still do well. And you can still afford to be reasonable,
patient, and generous with tenants with legitimate reasons for occasional late rent. It’s
all a matter of having reliable, good renters in general, not perfect renters who never
have a problem.
3 Unique Ways to Turn Your Property Into a Moneymaking Machine