How to Make the Most Money from Your Property Portfolio

If you’re about to take on the challenge of becoming a landlord, you need to know how to get the most out of your properties. It doesn’t need to be complicated, as long as you keep the tenant in mind and strive for high quality, you’ll make money. Read on for details!

Upgrade the Properties

Every property you’re looking to rent out needs to be in good shape before you bring in tenants. Remember, the better your property looks and the more it offers, the more money you can charge in rent. So, to maximise your profits, upgrade the properties to the highest standard possible.

To start with, up your curb appeal and make sure that the first impressions your property gives are positive ones. When you’re thinking about the interiors, you need to think about what would appeal to your target tenant. If you’re in a suburban area, it’s probably best to target families, so make sure your property is suitable for a family.

Make Them Safe

There’s a lot to think about and be aware of when you first become a landlord. For example, you need to follow all the relevant letting laws and make your rental property safe for tenants. If your property isn’t safe, you will be responsible if any accidents or incidents occur in the property. That’s why it’s so important to make it safe.

Most of the changes you’ll need to make are common sense. You should have all your electrical equipment safety tested regularly. You’ll also need an annual gas safety check. Smoke detectors should be checked regularly and have their batteries changed when necessary.

Take 1% in Rent Each Month

If you’re renting out a property, you need to know the 1% rule. This rule demands that you charge your tenants 1% of what you paid for the property in rent each month. You don’t want to dip below that 1% rule if you’re going to see a good yield on your investment. There are other factors that might affect that figure though.

You could buy an unloved property at auction and take on a renovation job. These jobs can be good investments because the purchase prices of such properties tend to be low. That means, if you keep your renovation costs low, you’ll be able to raise that percentage a bit higher and make more money.

Find Good Tenants

The last thing you need as a landlord are bad tenants. Before you think about filling your property, make sure you’re fully covered by your landlord insurance. You can never be sure what will happen when renting out a property, so it’s important to have that safety net.

When it comes to finding tenants, talk about what you expect from them and what they expect from you, and get the relationship off on a good note. It’s also a good idea to ask for references to give you some extra security. If you’re happy that everything is in order, complete the deal.

Making money as a landlord can be simple if you engage your brain and follow these tips!