In our current series of articles, we are offering some simple tips for landlords to either implement or even just consider when it comes to different subjects. So far, we have covered rent and pets, so if you are interested in maybe trying something new with either of those be sure to check them out. In this article, we will be talking about actual financial and investment choices that you may run into. Hopefully these will help you optimize your rental property for the best return.
1. Renovations. Renovations are a tricky subject when it comes to rental properties. Sometimes they are necessary and other times they are simply cosmetic. The main thing to think about when it comes to renovations is how much it costs versus how much you can regain in rent. Obviously if something needs to be fixed due to a safety issue, there is no question. However things like updating appliances or changing around a floor plan may not be worth the up front fees quite yet. Never bite off more than you can chew when it comes to these renovations.
2. Extra Rental Options. If you have a property with outbuildings, you may want to think about renting them separately. For example, you may have a shed on the property that you keep a bunch of old tools in. If you are hoping for a little extra income, you can ask your resident if they would like to rent it out for a small added fee. Many people need extra storage or would like a workroom for things that can't really be done inside the house or apartment. They may even request you leave some of the things in there for their use!
3. Property Management. While we are obviously bias on this subject, we cannot stress enough just how important it is to have the proper property management company. Getting someone on your side who knows what they are doing can mean the difference between just scraping by and pulling your hair out and feeling confident as a landlord.
If you have enjoyed these past three articles, stay tuned for the last Landlord Tips article coming soon. You never know if there may be something in here that you hadn't thought of before!