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.
By Faraaz Hashmi
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
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
Depending on your property and target tenant, some design elements you may want to incorporate include:
- Natural lighting — Dark 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
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.