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Published On: Wed, Jul 17th, 2019

7 Ways to Make More Money in Property Management

Contrary to popular belief, real estate is not a way to get rich fast. To make money as a property owner, you’ll have to be patient. It can take years for real estate investments to pay off.

The nice thing is that you can rent your property and make some money off it while you wait for its value to appreciate. Rental properties help you generate passive income and cover the mortgage in the meantime.

But, renting out your property doesn’t come without hard work. It involves a wide range of tasks and responsibilities. If you want to bring in the most amount of money possible and grow the value of your property, there are a few things you’ll have to do.

In this article, I’ll offer seven tips to help you boost your earnings from property management. 

Image/bykst via pixabay

Screen Your Tenants

Renting your place out is only worth your time if you bring in good tenants. You don’t want to hand over your precious investment to someone who is going to treat the place poorly. You want to rent to people who will pay rent on time and care for their unit as if they owned it themselves.

Screening your tenants is the best way to avoid bad rentals. Before you hand over the keys, ask them for references, run background checks, and try to learn as much about them as possible.

For example, what do they do for a living? Why are they looking for a new place? And how long do they plan to stay?

If someone is looking to live there for a short period, you’ll have to go through the search process all over again in a few months. By renting exclusively to long-term tenants, you can save yourself a lot of stress and money (marketing ain’t cheap!).

Of course, background checks and interviews require a bit more work up front. But you’ll be grateful later on when rent payments come in on time and in full.

Offer the Place Furnished

If your property is in a place with high turnover rates (i.e., college towns), you can rent it out faster by furnishing it yourself.

In these places, tenants don’t always have the need or resources to buy their own furniture. If they have a choice between an empty apartment and a fully-furnished one, they’ll probably go for the latter.

Of course, this does require an upfront investment on your part. And you may have to pay for furniture cleaning between tenants. But, you can also charge more for a furnished place to recoup this investment and generate more income.

Keep Up With Maintenance

Maintenance is an important aspect of homeownership. To allow your property to grow in value, you must maintain it regularly.

Every week, you should dedicate some time to taking care of small maintenance tasks. By doing a little at a time, you’ll avoid having to pay for major repairs later on. Things as simple as cleaning the gutters and checking for leaks can save you a lot of money in the long run.

And, a well-maintained place will attract more tenants. A poorly-maintained place is far more difficult to rent. Who wants to live somewhere that looks dirty and run down?

Add Desirable Amenities

When someone goes looking for an apartment, they usually have lots of choices. If you want to stand out among the competition (without having to lower rent), you might want to add some amenities.

Spend some time studying the market to see what people want in an apartment. Do they want a parking space? Hardwood floors? A rooftop terrace?

Many renters look for places that offer premium security. If you have the means, installing a gate and hiring a check-in guard could significantly increase your appeal.

Of course, some amenities might be out of your budget. But others are completely manageable. You’d be surprised at how much you can make by just giving the people what they want. 

Know the Law

Although this is a slightly less glamorous aspect of property management, it is essential. Understanding local and federal property laws will help you keep costs down and profits up.

Remember that building codes change frequently. You have to follow certain landlord-tenant regulations. Make sure you know what’s expected of you so that you aren’t forced to assume unexpected costs like mandatory repairs, or even worse, lawyers.

Set up an Online Portal

It’s easy for landlords to lose communication with their tenants. Even if you’re on the property every day, you might have completely different schedules and never bump into certain people. This can present all kinds of difficulties for you and your tenants.

An online portal makes it easier for you to collect rent and update your tenants about things going on in the building (construction, maintenance, etc.). It also enables them to contact you about repairs, noise, or other issues.

The best online portals even allow tenants to set up auto-pay, which ensures that you receive a full rent payment on time. Ultimately, they’re a great tool that helps to keep you and your tenants happy.

Cozy, Avail, and Propertyware are all examples of this type of software, but there are others out there that might better serve your needs. 

Raise Rent with the Market

To make the most amount of money as a property manager, you need to charge the highest rent possible. In order to do that, you must be in tune with the local market. That way, you can adjust your prices to stay competitive.

If your area suddenly becomes all the rage, don’t be the bargain spot. Instead, raise rents so that they at least match those around you. If you offer unique amenities, go a little higher.

In general, real estate markets work in cycles. Just because the market is healthy now doesn’t mean it’ll stay that way forever. So, get going while the going’s good and make as much money as possible while you can.

Conclusion

Managing properties is challenging. It requires a lot of coordination. Between maintaining the property, finding renters, and keeping everyone happy, it’s a lot of work.

However, the tips mentioned above can help you increase your property’s value and bring in some extra income at the same time. If you have patience and focus on providing a quality product for your tenants, property management is a great way to make some money.

Author Bio

Logan Square boasts of both comfort and convenient student living in Auburn, Alabama (AU). With oversized student apartments, tailored facilities and amenities, and just steps away from Auburn University, Logan Square is the preferred student accommodation to live, learn and experience student living.

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- Outside contributors to the Dispatch are always welcome to offer their unique voices, contradictory opinions or presentation of information not included on the site.

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    […] 7 Ways to Make More Money in Property Management – To make money as a property. management. Renting your place out is only worth your time if you bring in good tenants. You. […]

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