Owning property can be a great way to make passive income, but no one said it was easy. It comes with a variety of challenges that cause many property owners to give up and sell their property not long after they make their first investment.
The good news is, owning and renting property doesn’t have to be as big of a hassle as you might think. With these five tips, you can make managing your property a lot easier.
Stay in Contact with Your Tenants
It doesn’t matter what kind of property you own, it’s always a good idea to stay in contact with the people who are renting the space. It is especially true when it comes to residential properties when tenants are expected to follow certain rules.
That doesn’t mean you have to knock on doors or make phone calls! Using email newsletters is a great way to stay in contact with your tenants. You can remind them when rent is due, any maintenance that is being done to the property, and much more.
That’s not all. With Gmail ads, you can, “interact and engage with users like we’ve never seen before.” They are an especially good idea for hotels and retirement communities that are looking for more tenants.
Don’t Just Think Residential
Residential property tends to come to mind first whenever someone is considering the possibility of investing in property. It is true that it’s a quick, easy, and potentially lucrative way to get into the real estate game, but it isn’t your only option.
There are plenty of pros when it comes to investing in commercial real estate, which can include retail and office space. Industrial property is also an option.
If you want to keep things in the residential space, but you don’t necessarily want to own an apartment complex, consider owning and renting a home as an Airbnb. Retirement homes can also be a great option.
Don’t Be Afraid of a Remodel
Owning real estate means looking for ways to maximize income, but that doesn’t mean you should cut corners. Unfortunately, that’s what many people do, especially when it comes to remodeling.
The truth is, remodeling can be great, even if it requires quite a bit of money upfront. That’s because a wide variety of remodels can add value to your property, which means they can help you increase rent.
Smart remodeling options to consider include:
- Adding a bedroom
- Updating the bathroom
- Replacing cabinets and countertops
- Updating to luxury flooring
Get Help with Finances
Buying a rental property costs a lot of money, but the mortgage payment isn’t the only financial aspect you have to consider when it comes to your property.
There are a lot of financial decisions that need to be made on a daily basis, and they can all seem very overwhelming. A few costs you have to consider include:
- Insurance costs on your property
- Taxes, and how to minimize your tax burden
- What utilities, if any, you’re going to pay for
- Potential fines and fees, like property inspections
Even something that seems simple, like setting rent prices, isn’t. Getting the right price for your property requires you to consider the values of the property in the area, as well as the details of your own property. That’s why it is very helpful for many property owners to seek the help of professionals when dealing with all the financial aspects of a property.
Consider a Property Management Company
It’s not just the finances that can cause you to lose sleep at night. From figuring out who is going to mow outside an apartment building to getting your vacation rental ready for the next tenant, managing a property is more than a full-time job.
That’s why some industry insiders recommend not managing your own property.
A property management company can help you with all the details of your day-to-day operations. They can provide tenants with emergency maintenance, they can spearhead remodels, and they can provide you with connections to area contractors who can mow lawns, provide pest services, and more, all without you having to lift a finger. And, they can do it all while keeping you in the loop and providing you with control over the decisions that are made for your property.
Owning and renting property can be lucrative, but it can also be a challenge. Instead of trying to figure it out on your own, and possibly failing in the process, follow these tips and you may just have enough money and energy to expand your property portfolio.