{"id":5955,"date":"2018-11-19T17:02:53","date_gmt":"2018-11-20T00:02:53","guid":{"rendered":"https:\/\/moneyppl.com\/?p=5955"},"modified":"2022-02-21T09:16:39","modified_gmt":"2022-02-21T16:16:39","slug":"top-15-ways-to-profit-more-from-your-property","status":"publish","type":"post","link":"https:\/\/dev.moneyppl.com\/top-15-ways-to-profit-more-from-your-property\/5955\/","title":{"rendered":"Top 15 Ways to Profit More From Buying Property"},"content":{"rendered":"\n

For most people, real estate will be the biggest purchase they make in their lifetime. It is for this reason that people don’t take such a purchase lightly. They spend weeks or even months scouring the market for the perfect home. Homebuyers meet with agents, inspect countless houses, and finally, they find a house that is just right.<\/p>\n

Their house has to have the right number of bedrooms. It needs a kitchen to die for and a beautiful garden packed with potential. In short, it needs to be perfect. Provided the sale goes through without any major hiccups, these people are now the proud owners of a new house. Now the question comes up, what are they to do with it?<\/p>\n

Generally, there are two types of buyers. Some people buy for investment purposes while others buy to live in their new home. The latter of these may have plans to renovate and resell, but the distinction here is that they don’t have passive income in mind. It is the former, people who buy for investment, that is of interest here.<\/p>\n

Buying property with the aim being to rent it out is quite a different ballgame from buying a residence. The passive income you can gain from such a venture is a big advantage, but the managing a property can be a stressful, tiresome task. If you plan to rent, here are 15 property management tips you should know.<\/p>\n

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1. Put Some of the Rent Back into Your Property<\/h2>\n

People only look after things they own and this also applies to houses. The owner of a property would never dare wreck their own place. They probably have been lumped with enormous mortgage repayments. They have utility bills to meet every month. They have spent their time, effort and hard-earned money on turning that house into a home.<\/p>\n

Therefore, property owners look after and value their asset. Renters, on the other hand, have no such emotional or financial attachment to the house. They may have a deposit tied up in it, but it is not theirs. They have not shackled themselves to the house for the foreseeable future, so they probably will not take as much care of it as an owner would.<\/p>\n

This is not to accuse all renters of being horrible tenants. Of course, there are people who will do their utmost to maintain the property they are renting, but they will not go the extra mile. After all, it is not their property. For this reason, you should put a portion of the monthly rent back into your property. It doesn’t have to be a crippling amount, as 10 percent will suffice.<\/p>\n

Use this money to reinvigorate the home. Most homes can look tired if it has renters there for a long time. This level of lived-in will decrease the overall value and appeal of the home, which will make it harder to find good tenants.<\/p>\n

The money that you have put aside can go towards a fresh coat of paint, new carpeting or even hiring a handyman to tighten up the cupboards and realign the shelves. You can also use it for whatever the house needs to look fresh and bright.<\/p>\n

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2. Consult an Experienced Real Estate Agent<\/h2>\n

Real estate agents have a bad reputation. People often view them as crooked salespeople who will do anything to make a sale. And as with any industry, there are the bad eggs. This is true for real estate, too. There will be agents who don’t value their clients or their reputation.<\/p>\n

These people may not care how or who they sell the property to, so you should avoid such property dealers at all costs. A reputable real estate agent, on the other hand, cares about their clients and the area where they work in. They want to see the areas flourish because the more valuable the houses, the more money they make via commission during sales.<\/p>\n

These agents will want to find the best possible buyers to invest in the area by investing in their houses. A good agent wants their buyers to be happy with their purchase. After all, happy customers are customers who will return in the future. An agent such as this also knows the local market. They know the rental trends and the best place to buy if you’re looking for a rental property.<\/p>\n

The insight of these professionals can be invaluable throughout the purchasing and rental process. In the beginning, they can make sure that the house you purchase can provide a decent rental income. No one wants a house that is undesirable to renters. Once you purchase the property, a real estate agent can help you with renting and property management.<\/p>\n

These people make it their business to know how to maintain a home. Real estate professionals don’t want to see the houses they sell fall into disrepair.<\/p>\n

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3. Give Tenants Simple, Straightforward Instructions<\/h2>\n

A person who is renting their property may have both long-term tenants and short-term vacationers. However, all tenants need instructions on how the house works. These people don’t know the house like you do. So, you need to instruct them on how everything works, where everything should go in simple terms.<\/p>\n

Providing information is not an insult to the intelligence of other people. Rather, it is stating the fact that people don’t like complicated things. People on vacation don’t want to spend the first few hours of their holiday figuring out how the TV works or how to operate the music system. They want the shortest possible rundown so that they can get on with their leisure time.<\/p>\n

And the same is true for long-term renters. These people don’t want to spend huge amounts of time and effort to learn about their rental. To maintain your tenant’s peace of mind, provide instructions for everything, but in the simplest possible way. This does not have to be an arduous task.<\/p>\n

In fact, a proficient property manager will be aware of what to do in this regard. If you consult a professional before renting, they can tell you what to do. Property managers understand what renters need to know. They can help you decide what to convey to renters and how to deliver this information. Sorting it all out prior to renting your property will minimize damage to your property, too.<\/p>\n

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4. Know When to Rent Your Property<\/h2>\n

When people have jobs, they often go on vacation. When people go on vacation, they need a place to stay. A savvy real estate investor will be aware of this and will take advantage of it. Of course, there are hotels and resorts to accommodate the massive amounts of tourists during the peak seasons. But, not all these people want to stay in hotels.<\/p>\n

Some prefer to rent a home or an apartment for their friends and family. And these people are a landlord’s target market. When it comes to holiday home rentals, there are two different seasons to consider. These are the peak season and the off season. During the peak season, everyone is on vacation, so they are looking for a place to stay.<\/p>\n

This is the time to generate the most amount of income because rents go up due to the overwhelming demand. Rentals for vacation homes be three times higher during the peak season. So, this is the perfect time to drum up some extra cash. Also, it is not the time for owners to stay in the house themselves. It might be tempting to spend the holiday season in a holiday home that you own.<\/p>\n

After all, who wants to pay for an exorbitant hotel when they can stay in a house they own free of charge? While you can do this sometimes, don’t do it every peak season. By renting out at the best possible times, you can increase your earning potential. Visit your vacation home during the off season and rent it out during the peak season to make the most out of your property.<\/p>\n

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5. Price Your Property Right<\/h2>\n

Expectation management is key in the real estate industry. Owners are often far too quick to overprice their property. This is because they don’t know the current housing market or they have an elevated view of their property. This is completely excusable. First, not everyone is a real estate agent and second, who doesn’t love their home?<\/p>\n

Obviously, a person who has spent years pouring effort and money into a property will think their house is worth more than it is. While it is completely understandable that homeowners will have a slanted view, it doesn’t guarantee their property will fetch the price they set. But owners don’t set the value of the property; the market does. It is the market that determines the rental price of your property. An owner looking to rent their home to vacationers should do their research.<\/p>\n

So, look at the prices that other places are going for, as well as the rate for hotels and resorts in your area. Once you find this information, set a reasonable price for your property. There will always be demand for houses during the vacation season, but this may not always guarantee your place will find customers at the price you want. So try opting for a fair price to maximize the renting potential of your property.<\/p>\n

The same principle is true for owners renting their houses to long-term tenants. An overpriced property will generally not find renters, no matter how much demand there is in the market. So, remember, it’s better to set a fair, market-relevant price if you want to rent in a timely manner.<\/p>\n

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6. Have Someone Else Do a Property Inspection<\/h2>\n

Two sets of eyes are always better than one. And property inspections are not exempt from this rule. These signal a time of the year when homeowners reacquaint themselves with their property. Homeowners have to go through the entire house, taking notes at each step. There will be things they will need to update, fix or replace.<\/p>\n

Any homeowner knows their property inside and out. They know every nook and cranny, so when they inspect the property, they do it more than once. Most people inspect at least a couple of times as they go through the house. However, most people’s brains autocorrect certain things because homeowners are used to them.<\/p>\n

There is also human error. No matter how many times you may check things, there will almost always be something you miss. After all, no one is perfect. So, it is advisable to have someone else double check your property inspections. A fresh set of eyes may be able to spot something you overlooked.<\/p>\n

This may sound pedantic, but you may be surprised what a new perspective can provide. When renting a place to new people, you want everything to be in tip-top shape. This way, if the tenants damage something, you are not liable because you know it was intact before renting.<\/p>\n

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7. Remember, Maintenance Costs Less Than Repairs<\/h2>\n

Prevention is better than a cure. This may apply to medical situations, but it is applicable everywhere. It is less expensive to prevent an accident than it is to fix something once it has broken. Granted, there may be more effort involved in a maintenance plan, but it is well worth it.<\/p>\n

In terms of property management, maintenance should be a priority for every property owner. Consider the following circumstance. It is peak season at a popular summer vacation spot. You have found the perfect people to stay in your property for a couple of weeks, and they have agreed to the price that you set. Money is in your bank account, and you have dutifully handed over the keys.<\/p>\n

Then, one night you get a phone call from a couple of upset tenants. The air conditioning system has quit without any warning, and your guests are left in the sweltering heat. They are demanding you fix it promptly. Also, they expect you to compensate them for the inconvenience you caused. So, not only do you have to pay someone to fix the AC, you also may need to refund your guest’s money.<\/p>\n

The expense may end up blowing through all the money you made on the rental. Although, this is the worst-case scenario, it illustrates the importance of regular maintenance. So never skimp on maintaining your property. Maintenance can prevent things from breaking down entirely.<\/p>\n

Fixing a broken item will always cost you more than keeping it in working order. Not to mention, you will save yourself from any stress or complications in the future.<\/p>\n

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8. Know Your Property<\/h2>\n

You have just received the keys to your latest real estate purchase. So what do you do? Do you hop online to see how much you can set the rent? The answer is no. Step away from the computer and put the phone down.<\/p>\n

Use those keys to unlock the front door. It is time to get to know the property you have bought. This may sound like a wild personification, but every house is different. You need to acquaint yourself fully with every single property you buy before you rent it out to others. If this concept is entirely foreign to you, seek the advice of a property manager.<\/p>\n

These people will be able to tell you exactly what you need to find out about your new house. This includes finding out everything you can about the house and all the systems, too. No one is saying you need to become a plumber and electrician overnight. But you need to know what is going on in these areas.<\/p>\n

Systems like these are not eternal. Each of them has elements with set lifespans. They have parts to replace and maintain, too. A property owner needs to know what they need to replace and when. By doing this, you can stay ahead of the curve. Chances are, you won’t be blindsided by things breaking down in the coming months.<\/p>\n

Property management can be a time-consuming task. So if you don’t have the hours to spare, hire people to deal with such things. There are countless services that deal specifically with property maintenance, so utilize them if you can.<\/p>\n

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9. Plan Your Finances<\/h2>\n

If you are heading into the world of property acquisition and management, you probably are aware of the need for a financial plan. A financial plan is paramount when it comes to property, so you should prepare one using all the information available. This includes doing ample amounts of research on the local property market, too.<\/p>\n

When you buy a new property with rentals in mind, there are three things to consider when it comes to the pricing of the property:<\/p>\n