Did you know that almost one in four Americans — 23% — believe that investing in real estate is the optimal wealth-building strategy?
A mere 12% actually did so last year. Yet, it’s still clear that many people in the country realize that investing in stocks, starting a business, or getting a side hustle aren’t the only ways to build a solid financial foundation.
If you’ve already invested in real estate, are you maximizing your monthly real estate income? The odds are that you’re not.
Keep reading to see how you can increase your current real estate income.
Consider Hiring a Property Manager
Do you have the time to be an investment property owner and manager?
Serving as the landlord of your rental property means you must do the following:
- Find quality tenants
- Figure out appropriate rental rates
- Manage maintenance and repairs
- Collect rent
- Advertise vacant units when tenants leave
- Deal with problematic tenants
And that’s just for starters since there are so many hats an investment property owner must wear daily. How do you efficiently manage your properties? One option is to retain the services of a property management firm.
You can delegate tasks to the third party and pay a relatively small percentage of monthly rental income in exchange for the help you’ll receive.
Ensure You’re Charging Enough for Rent
While charging tenants fair rent is essential, don’t do so at the expense of leaving too much money on the table. You might limit your real estate income by charging too little for rent.
A property manager can conduct a rental valuation to let you know whether you might be charging too much, not enough, or just about right.
Remember that property management firms have a finger on the pulse of the rental market in your neck of the woods. So they can give you an honest appraisal. By requesting a rent review, you can enjoy more rental income.
Assess Rental Agreement
Does your rental agreement protect you as the investment property owner? Ensure the contract clearly spells out tenants’ requirements and any penalties that might be applied if the rules are not followed.
The last thing you want is a bad tenant you can’t evict. Ensure your rental agreement gives you the leverage to take action if a tenant doesn’t pay rent, damages your property, or endangers you or other tenants.
You won’t be enjoying tenant income from a tenant that is delinquent in rent. No rental property owner wants to deal with an interruption to their stream of passive income every month.
Maintain and Repair Rental Property as Needed
Another way you can increase your investment property income is by ensuring it’s properly maintained and repaired as required.
Unless your investment property is in good shape, you won’t attract and retain good tenants. Quality tenants want rental units that are well-maintained.
That’s one reason it makes sense to work with a property manager. The service provider can find the right contractors, source materials at reasonable rates, and handle maintenance and repair logistics.
Your rental property value will increase when it’s regularly taken care of. As well you can ask a rental property manager for recommendations on upgrades or additions that can increase the worth of your real estate asset even more.
If you make improvements and offer tenants more, you can justify a higher rent.
You Can Boost Your Real Estate Income
Consider the recommendations above if you own a rental property and want to increase your monthly income. The chances are there are changes you can make to boost your rental property income.
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