Skip to content

4 Things That Can Help Ensure a High Return on Your Investment Property

Thinking about how to ensure a high return on your investment property? Then this article is for you. 

Faraaz Hashmi | Skybridge Property Group

By Faraaz Hashmi

Real estate is always a reliable investment. Yes, the real estate market does fluctuate, so purchasing low and selling high is not always a given. However, real estate provides the best opportunity to generate passive income and build wealth. Owning property and successfully renting it out could easily generate thousands for your yearly income, whether you rent out a room, a whole house, apartments or commercial real estate.

Whether you’re fixing up the property now or waiting until it’s safer to bring in tenants, Skybridge Property Group explains ways to ensure you get the best return on your real estate investment.

1.    Get Your Rental Business Off The Ground

If you haven’t started your rental business yet, there are few preliminary steps that need to be considered. One proven step is registering your newly clad business as an LLC. Not only does a limited liability corporation provide personal liability protection, but it also provides other benefits, including flexible tax options. You’ll also need to appoint a registered agent to act on behalf of the company when dealing with the state. In addition to tax notifications, a registered agent will also handle time-sensitive matters between your company and the state.

Another crucial step is determining where your rental property will be located. Getting advice from an experienced real estate agent can give you insight into what is currently renting and what is not being rented. Your agent can also help you navigate HOA guidelines and local laws that could impact your choice; they will be able to point you toward the right location to fit your investment plans. Having this kind of connection can also lead to future rental prospects. Lastly, pricing your new rental property fairly will guarantee that it’s always booked.

2. Hire a Property Manager

Part of the lure of investment property is that it practically makes money on its own. However, renters require a certain amount of attention, and the property requires maintenance and repairs. In order to alleviate some of the stress that comes with property management and to demonstrate to renters that they will have someone dedicated to managing their property, you can hire a property manager to take care of things. A property manager can help you choose the right tenants, regularly check and maintain the property, and collect the rent from tenants.

3. Make the Property Appealing

Your design decisions will depend on the type of property you’re investing in. Once you have chosen the type of real estate that appeals to you, then it’s time to take pen to paper and define your target tenant. Once you’ve figured that out, you’ll want to design the rental space with their needs in mind. Get to know your market by talking with your real estate agent, neighbors, property managers, similarly-situated investors and local business owners. Researching your potential tenant market will give you insight to what they want, and providing what they want will allow you to charge premium rents and increase your profit.

Depending on your property and target tenant, some design elements you may want to incorporate include:

  • Natural lightingDark spaces can be depressing. Consider opening up spaces by taking out walls and adding large windows in order to let that natural light in (bonus: natural light makes small spaces look larger).
  • Technology — Embrace the 21st century and all smart technology offers: smart locks, smart thermostats, smart lighting, etc.
  • Curb Appeal — The exterior will leave the first and lasting impression. Hire a landscaper to make the exterior chic and modern, update mailboxes and light fixtures, and apply a fresh coat of exterior paint and a statement door to wow renters.
  • Kitchens and Bathrooms — In all rentals (commercial and residential), kitchens are gathering spots, and bathrooms should be clean and beautiful. Start by updating the cabinets, which are attention grabbers in any space.

4. Add the Extra Amenities

Besides a stellar rental property, tenants love the extra perks that make high rents more alluring. You could install an on-site washer and dryer that makes it more convenient for your tenants. Also, installing high speed Wi-Fi, with the cost folded into the rent, makes life a tad bit easier for renters who would not need to worry about installation, monthly fees and removal once they vacate. Moreover, attractive and energy-efficient appliances could potentially be the tiebreaker between your property and the competition. Get the advice of your property manager on what amenities would benefit you and your tenants and still result in a profit.

Whether you already own investment property or are looking to purchase, you have chosen a great strategy to build your wealth. However, the decisions you make post-investment will determine how much return you get. After establishing your business, hire a property manager to keep up with your tenants and the property, and make the property appealing to your target tenants with design upgrades. Then, put the icing on the cake with the bonus amenities that will be sure to give you an advantage over your competitors. You won’t regret the time and money you invest in your real estate.

Skybridge Property Group is leading the contactless revolution in property management. To learn how we can help you, call us at 909-610-9780.

4 Things That Can Help Ensure a High Return on Your Investment Property
Article Name
4 Things That Can Help Ensure a High Return on Your Investment Property
Thinking about how to ensure a high return on your investment property? Then this article is for you.
Publisher Name
Skybridge Property Group
Publisher Logo
Contact Us