You probably have a lot of properties that are not used. You may find it a good investment to acquire and acquire properties, but you are not really getting the most out of it. You might be wondering how you will produce an income out of them. Here is a compilation of some of the best ways to earn from your properties.
1. Minimize Vacancy
The best way to do this is to accept long-term tenants rather than accepting tenants who will just stay for a month or two. It is also better that you establish a minimum time frame of when they can rent your property, say a contract will last for 6 months. This will lessen the turnover as you will know when a tenant will move or not. You will have enough time to look for another tenant before they will move out.
2. Lessen Turn Over
The process of turnover will most likely require you to spend money for advertising and necessary renovation to attract new tenants. In order to achieve such, you have look for tenants who can stay and remain loyal to you as time goes by. If you find one, do your part to keep them. The last thing that you will probably want is losing a tenant, so you must give all you can to make them stay. Don’t give them any reason to leave you. Price is not the only thing that attracts them, how you deal with them matters too. Look after their welfare and make them feel like you are a family. Don’t make them feel like an outcast, but rather, give them the homey ambiance and deal with their concerns as fast as you can.
3. Explain Rental Fees Carefully
It cannot be avoided that some tenants cannot pay on time. It is not right that you shout at them, but you should explain to them with the respect that you are running a business and you follow rules to keep it going. Like for example, having an additional fee for those who would pay late. If the tenant paid late and just gave you the exact rental fee, explain to them that the payment is full not unless they give the additional fee. Tolerating them is not good; they will make it a habit. What is important here is that you make them feel that you respect them despite the situation.
4. Increase Rates Only When Needed
A low rental fee will attract new clients, but that does not mean that the price will stay the same but it does not also mean that you have to increase the payment once and for all. Ideally, increase the rent only when needed. Be sure that you know the common price in the area where your property is located. You can ask people who work in such fields like commercial real estate agents Perth about how much you can increase your revenue, because they will know the pricing in different areas. An increase in rental can be done when you plan to do necessary to changes to make your property more comfortable for them.
By doing so, little did you know, you are turning your properties into income generating assets. Why let your properties get old and destroyed when you can earn from them? As they say, maximize all your resources. It may be an additional job on your part, but all your hard work will totally pay off.