Ways to Make Your Rental Property More Profitable

Investing in rental properties is one of the best ways to make some passive income and even, potentially, primary income. Of course, there’s always a catch. You have to be willing to put in some work to maintain the property and make the home attractive. Additionally, you’ll work with your tenants, which sometimes can be harder than the physical work of bringing the property back to life. We understand the challenges, but we also know you’re in this for profit. If you’d like to learn some ways to make your rental property more profitable, we encourage you to read our guide below.

Maintain a professional relationship with your tenants

Put yourself in your tenant’s shoes and try to relate to their concerns. If you’re difficult to work with, or a tenant has to wait weeks to get something fixed on their home, they’re never going to stay. A profitable rental property is all about retention; after all, having the same tenant for five years is better than having a different tenant each year. To retain good tenants, be someone you’d want to work with. Fix problems in a timely manner and relate to your tenants. They’ll be more inclined to stay and pay more down the road if they have a great landlord.

Work out deals with other services

Many renters choose to rent because they don’t want to maintain the home or yard. If you’re new to being a landlord, you’re probably doing a lot of the work yourself. On the other hand, if you’ve been a landlord for a while, it may be in your best interest to make a deal with a local landscaper. For instance, if your landscaper charges $50 per month, you could charge the tenant $60 per month; that way you’re making something out of the deal.

Consider offering unique amenities

With rent prices being so competitive, you really need something––or some things––to make your property stand out. Each location is different, so it's important to consider what people in your city want. For instance, someone in Colorado might want a community-shared garden, while someone in New York City would love to have a parking spot. Use your location to your advantage and offer something unique that people in your area want.

Install quality items that last

When maintaining or developing a rental property, far too many landlords make the mistake of using whatever is cheapest. By doing that, you’re not only devaluing your property, but you’re asking for future repairs that will only cost you more. Instead, you should focus on making your rental durable and low-maintenance by installing quality items. That includes quality floors, paint, light fixtures, and more. You’re only costing yourself more by using cheap items; plus, your tenants will feel like their landlord doesn’t value the property. Prove them wrong.

Investing in rental properties and being a landlord is no easy feat. On top of your own home, you’re responsible for someone else's and answering calls at pretty much all hours. However, with these ways to make your rental property more profitable, you could earn some serious income.