If you have a property that you rent out or are considering doing so, then you will want to make the most money possible. Not only will you want to charge the highest rent that you can, but also minimise your costs and make sure you have tenants in as much as you can. Below are some things to consider and some tips on making higher profits.
Low end – less costs
If you decide to go for a low end market, then your property will be cheaper and you will not be able to charge so much rent. However, if expectations are not that high, then the maintenance will not cost you so much as it will not have to be such a high quality. This is the only option if you do not have much money to invest but is also worth investigating even if you can afford to spend more.
High end – high rent
If you buy a high end property then it will be expensive to purchase. You will need to keep it well maintained so that you can charge a good rent on it. This will be expensive but will give a bigger income. This is a better option of you can afford it and want to live in the home eventually as it will be a in good repair and easy to move into.
Avoid big rent hikes
If you put rent up by significant amounts then it could put tenants off. They may soon leave and you could risk having the property empty, earning no income for you. Alternatively they may stay but not be able to pay the rent in full, on time or at all. However, putting it up a little bit each year would be fairer and less likely to could the tenants to be angry or to find it unaffordable.
Use cheap agent
It is likely that you will want to use a letting agent to oversee the property for you. They will be able to do the necessary financial checks for you and deal with any problems with late rent payments etc. Agents provide different services and charge different amounts for this. Therefore make sure that you are aware of what the differences are and what you will get for your money. It could be well worth going for the cheapest ones.
Allow pets and smokers
If you allow tenants to have pets and to smoke in the property then you will have more potential tenants. It may cause more mess and smell and your insurance could be higher though. However, you could potentially charge more and you will be more likely to always have a tenant in the property paying you rent.