6 Tips To Earn More Money From Your Rental Property (or AirBnB)
Do you want to generate a comfortable passive income through real estate?
Rental properties are an excellent investment strategy and can deliver you a healthy sum of cash on a consistent basis.
But if you want to grow your income, you need to further maximize your return on investment (ROI). Most people will think they have to buy more properties, but this is extremely expensive (and stressful).
Why not increase the ROI of your existing rental property instead
Here are 6 proven ways to boost your rental property’s return on investment:
#1. Minimize Vacancies
One of the best ways to keep vacancies to an absolute minimum is to rent your property to long-term tenants. This will minimize the hassle and expense of dealing with turnover. It is important to know that almost every property has a solid demand price in the neighborhood it is located in. If you are experiencing a high rate of vacancies on a consistent basis it may mean that you have to adjust your price point.
Another way to minimize vacancies is to market your property well. Think about some type of characteristic that sets it apart from other rentals in the neighborhood. This could be its prime location near a school or university or a business property that is near transport facilities for employees. If your property does not have one you can create one by making sure it is the best value for money in town.
And if you’re renting your property out on Airbnb, this means keeping your property organized and maintaining positive reviews as a result.
#2. Minor Cosmetic Makeovers
Small improvements can create a massive impact when it is done strategically. Minor cosmetic touches such as a fresh paint job, a garden makeover or improved lighting can dramatically improve the appearance of a property, making it more attractive to prospective tenants without spending a fortune.
Make sure your property is rent-ready by getting the entire interior clean and that everything is in working order before putting it up for rent. Having your property looking attractive inside and out will reduce the time it takes to find a suitable tenant which will boost your return on investment. Plus, you might even be able to charge more!
A sure way to get your property looking great is to have it professionally cleaned and ensure that all repairs and maintenance have been carried out before declaring it ready for rent. Things to consider are increasing the curb appeal with things like built-in concrete planters, good landscaping design, and power-washed driveways and garden paths. Power washing garage doors and the roof will not only improve appearance, but will also boost your return on investment and increase the value of your property.
#3. Emphasize any In-Demand Amenities
If you are aware of an in-demand for amenities like a permanent parking spot for example, finding ways to meet that demand to some extent will put your rental property into high demand. This may mean investing in the addition of a parking lot if you have the available land space.
In most locations, simply adding a parking spot will increase your booking rate and allow you to charge more.
It is well worth brainstorming any ideas you come up with to fulfil any demand for amenities. Don't dismiss any until you have considered them from all angles.
#4. Strategic Rental Increases
Even though we know that lowering rents can lead to higher yields in some instances, increasing rents on your longer-term lease contracts is a strategy that can yield consistent return on investment. However, to achieve success in this way is a delicate balance that requires in-depth knowledge of the value of your property in relation to that of your competitors.
Tenants will remain loyal if they are unable to find equivalent value at a lower rent elsewhere. This doesn’t mean that you should not increase rent when there is a good reason to do so. Remember that tenants are aware of the cost of moving so if the value of the current rent isn’t significantly lower than moving to a new place, they will come to the conclusion that it is better to remain where they are.
According to the home loan experts Maxiron Capital, this is a proven strategy, noting that “many property investors start low. This brings in more tenants to start with. As you get better reviews on Airbnb, you can start charging more. This is when you really start turning a profit”.
#5. Offer Property-Related Services
The idea of offering property-related services such as landscaping, garden maintenance, and housekeeping or maid services may not have occurred to you before.
However, it is a good way to make your property more attractive to potential tenants. You can set up your own cleaning team to do this or you can hire a local professional company. This way, you earn a referral fee and keep your tenant happy.
You can also use property services as a differentiating amenity on your rental listing by advertising a regular maid service included in the rental. Providing gardening and pool services through a local service partner will not only produce a small net profit, but will also ensure that the property is well maintained and that the neighbors are kept happy.
#6. Meet Outlinx
Having solid reviews is the number one way to earning more with Airbnb and property rentals.
If your tenants love living there, of course they’d be willing to pay more.
One way to keep your tenants happy, is to have a neatly organized property with clear instructions for everything. But writing stick-it notes, or having a messy binder filled with loose paper just doesn’t cut it.
With Outlinx, you can stick a QR smart sticker onto your laundry machine, coffee maker, TV box, or other appliances in order to share use instructions with your guests. This way, you connect important notes directly to objects.
Have a complicated washing machine that guests keep calling you about?
Just stick an Outlinx sticker on it and save the hassle of back-and-forth communication with your guests.
Plus, even if your guests don't have the Outlinx app, they can still scan a sticker with their phone's native camera to view information the host may have added via Outlinx.