There are certainly upsides to being a landlord, but it isn’t always as profitable as it may seem. Many times you get less than the market value of your property which can be frustrating to say the least.
But all is not lost. With the right tricks up your sleeve, you can make you rental property profitable in no time! In this article we’ve prepared for you 4 tips on how to turn your rental income into a profit:
#1 Check the local market
The average cost of renting varies across cities and counties, so it makes sense to first check your average local rent prices before putting your prices up. Needless to say, you shouldn’t stand out too much from your competition otherwise you won’t be able to rent (if the price is too high) or you will end up losing money (if your price is too low).
#2 Improving kerb appeal
First impression can make or break a deal. Although you shouldn’t judge a book by its cover, you should judge a house by its kerb appeal -- or the lack of it for that matter. A property’s outside look, also known as the kerb appeal, is extremely important when it comes to renting. When potential tenants come to see your house they will have their mind made up in the first 10 seconds, so make those first few moments matter. Don’t let your rental go unnoticed because you couldn’t clean up that pile of rubbish or trim the bushes.
#3 Looking for tax breaks
For residential properties, there are certain allowable expenses you are entitled to. For instance, you can be compensated for the things you spend money on when renting out the property, including agents’ and accountants’ fees, buildings insurance, interest on property loans, maintenance and repairs, cleaning, gardening, etc. Also, for furnished residential lettings, you can claim ‘wear and tear allowance’ which can certainly come in handy.
#4 Devil is in the details
Improve the overall condition of your rental. You don’t have to spend a fortune, just minor twitches here and there can make your rental more appealing and therefore more valuable.
First things first -- make sure your rental is spick and span. First impressions matter and cleanliness is crucial when it comes to forming an opinion.
Secondly, mind the details. For example, punctures and rips on the wallpaper can be off-putting. Simply cut out the damaged area and install a new patch. Of course, you’ll need a matching piece to patch it up. If you don’t have any left, you can always buy a small sample at a store.
Also, if you’re renting a furnished flat or house, make sure your furniture is clean and usable -- nobody wants to sleep on a worn-out mattress.