As a landlord, you may assume that the key determinant of your profit is the rent that you charge your tenants. While this can have a significant impact on your profitability, there are many other factors that can influence your financial success.
If you are the landlord of multiple properties, implementing strategies to reduce your overheads and maintain a reliable cash flow can be invaluable. The following are some key ways that you can improve your rental profits.
Consider cutting out the middleman
If you use a property manager to help you with your rentals, you are probably doing so because you want to increase efficiency and reduce stress. It is important to evaluate the cost of your property manager in relation to the financial benefit that they are truly bringing.
Lower rent can bring higher long-term income
It may be counterintuitive, but charging a lower rent can have a stabilizing effect on your cash flow. It will lower the turnover of tenants, meaning that you have an income that you can depend on. Finding new tenants can be costly, and by reducing tenant turnover, lowering rent can also reduce the amount of marketing work that you will have to engage in.
Make sure that you are protected by contracts
So many landlords fail to have a comprehensive contract signed before the tenant moves in. This could leave the landlord in financial trouble if the tenant does not look after the property.
If you want to become a more successful landlord, it is important that you create leases that protect you and prevent disputes from arising.