This is a great time to invest in real estate since the market is so hot. It’s a fantastic time especially since there is a shortage of rentals out there these days. This means that profits are very good. Landlords are enjoying this period of profit-generating but they don’t realize that they are doing things that are limiting how much more they could make.
Even if they are happy with the money that they are taking in, they could be leaving money on the table if they are not doing things a certain way. Since nobody would refuse to make more money than they are currently, it is a good idea to be aware of these revenue-generating methods. In this article, we will go over several that you should be aware of.
1 – Reinvest into more units
One of the best things about investing in real estate is how scaleable it is. This means that you can do things like reinvest the money you are making from one property to buy more. When you have several properties going at the same time, you can increase your revenue dramatically.
Many new landlords are reluctant to buy more properties since they are busy taking care of a single one. The key is to look for the best residential property management companies in Toronto. These companies will handle a lot of the busy work so you can focus on growing your real estate empire. They will screen tenants and handle taking care of emergencies and maintenance.
When you buy more properties then you can continue buying more indefinitely since you have a lot of collateral for loans and even can get a lot of tax breaks by reinvesting. This is how every real estate corporation got started.
2 – Screen your tenants
Whether you have one property or several, your tenants are going to make or break your business. A bad tenant that doesn’t pay the rent and ruins the property itself will be very costly. First, due to lost revenue because of the non-payment. Second, it is difficult to evict somebody and requires costly court appearances.
A good tenant is somebody who will pay on time and take good care of their unit. They stick around for years so you don’t have to spend money looking for new tenants often and risking an empty unit for long periods while you look.
Screening your tenants will ensure that you are picking the best candidates so you don’t have to deal with bad tenants.
3 – Offer added value
You can maximize how much you are able to get for a property by adding things of value to the deal. For instance, if you have a furnished apartment for rent then this is attractive to renters since they save a lot of money by not having to buy their own.
Another perk is offering a parking space so you can increase how much you ask for rent. This is a huge convenience for people renting in a city, for example.