The 3 Ways To Make More Money From Your Rental Property
There are a lot of ways to invest even if you aren't rich. One of them is to buy a real estate rental property and make money in an almost passive way. It's a great way to build wealth not only because you are getting income every month from the rent being paid, but the value of the property is also increasing over time.
The key is to know how to make as much as possible from the property. Whether you are renting out one property or have multiple units, there is always a way to increase your profits. In this article, we will go over several ways that you can make this happen.
1 - Pick the right location
It's a cliche that everybody is familiar with these days, but the location is the most important part of real estate. If you are looking for a rental property that you will be able to get top dollar for then you have to make sure to buy in a desirable neighborhood. Look for homes for sale in Toronto ON, for instance, and focus on the areas that seem to have everything that a renter would want. This will make it easy to charge the maximum.
The idea is to try to find the neighborhood ahead of the curve before it becomes expensive. This way you can get the property at a bargain and within a few years, it will have gained a lot in value. It can be tricky to time the market this way but look for signs that a previously run-down neighborhood is up-and-coming.
If you see some hip coffee shops starting to pop up then this is a sign that things are about to get expensive.
2 - Go with furnished apartments
People will gladly pay more for furnishings for an apartment since it will save them a lot of money. Getting a sofa, chairs, bed frame and everything else you need to live in a place costs thousands of dollars. Not only that, but then people have to move them out when the lease is over. If somebody is finishing up their lease then this is one less thing they have to think about.
You can easily add on a few hundred dollars per month more for rent. This means that the furniture will pay for itself after a short time.
3 - Off storage space
People are also willing to pay extra money if they are getting a good amount of storage space. Having to rent out a storage locker to put things that won't fit into an apartment costs a lot of money every month. If they can have some storage space in the building where they live they will gladly pay some extra money.
It can be a small area in the basement or a garage in which they are the only ones able to access it. This provides them with a lot of value.
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