The ultimate aim of every real estate investor is to make money. If you already own an investment property, you certainly want to have it bring you more returns. Here are six ways you can boost your rate of return.
Renovate
Your Investment Property
Improving
your investment property will enhance its appeal, thus attracting more renters
or buyers. Identify the essential areas that need quick fixes and implement
them professionally. Whether it's a rental house or a property you bought for
resale, repainting the ceiling and walls will go a long way.
Ensure the kitchen, bedroom, and bathrooms are attractive because they are the main rooms
that sell a house. Cleaning the entire house and having properly fitting
cabinets is also enough to draw somebody's attention. After adding value to
your property, increase the rent or resell it at a higher cost depending on the
market trend.
Work
with Experienced Agents
Experienced
real estate agents understand the dynamics of your local market and will advise
you accordingly. You shouldn't just find an agent with many listings in your
market, but one who is trustworthy. They should create a market plan to connect
you with customers or renters.
If your agent is reliable, shelve some of your opinions and follow their advice. While
you may have your preference and style, you will likely benefit more by
following their expert tips. If you can achieve your goal of boosting your rate
of returns, the rest shouldn't worry you.
You want
to make sure that the agents you are working with are representing reputable
agencies and are providing credible information. Sometimes, shady agents can
take advantage of clients who are not educated in the housing market so it is
important to do a little background research before.
Price
Your Property Appropriately
Some
people rent their property at below-the-market rates, which is quite imprudent.
After paying taxes, insurance, and maintenance costs, you will have very little
in your pocket at the end of the year. If you want to attract renters, lure
them by making your property appealing but not charging ridiculously low rents.
If you
don't know how to determine fair rents for your property, seek help from your
agents. Although you can also utilize some online tools for the same, agents
will do better because they advise you to increase rents to keep up with
inflation. An example of doing some online price benchmarking could be when
trying to find a home in Florida. Searching online for Homes for Sale in Ormond Beach, Florida is a
tactic you can use to analyze the market trends and get a baseline price for
homes in that area.
Advertise
Your Property
Most
brands are rethinking their marketing strategies to keep up with consumer
behavior. To boost your ROI in the highly competitive market, embrace digital
marketing. Hire professional photographers to capture clear photos of your
neatly arranged property.
You can
then send the photos to your agent and share them on your social media
platforms. If your property is attractive, most people will be willing to rent
it despite the high rents. Be careful to give honest information about your
property, especially concerning security and structural integrity.
There are
new 21st century ways to showcase your home also. There are 3D home displays
that allow prospective buyers to virtually inspect the house. This is a great
resource in today’s day and age, especially during the pandemic when buyers are
weary about entering homes.
Take
Advantage of Inflation
Inflation
triggers increased demand for housing as the population keeps growing. A
shortage in housing will be a reason to increase your rental charges. However,
the trend will not continue forever, so you should know when to review the
rents.
You can
enjoy high returns provided the supply will keep having unpredictable paces. It
will earn you higher returns because the mortgages will remain constant.
Reinvest
Your Money
If you
have a rental property that's not giving you enough ROI, sell it and plow back
the money. But, you should evaluate the market to know whether your property
can sell fast. If it can, sell it ASAP and buy another.
You may
need an expert to help you implement this idea. If it's not viable, drop it and
focus on other ways of enhancing your ROI. You don't want to end up deeper in
losses.
Boosting
your ROI will require some effort and even money. Following the above tips will
help you achieve your goal. But, you've to research to understand the market
dynamics.
0 Comments