The sweet reward after hard work- profit. Every landlord’s dream is to maximize the profit of their investment property. We hear here and there about what mistakes landlords should avoid in this business, especially in this financial climate, but today we want to take a positive approach and discuss strategies landlords should engage to see their profits skyrocket.
Excited? So are we! Let’s explore the best practices to get the most out of this business together.
Utilize Tax Breaks
Landlords may be eligible for certain tax breaks. Take advantage of these to reduce your tax liability and increase your profits. For instance, if you own a rental unit, you may be able to take advantage of the tax deductions available for real estate. These deductions can include property taxes, mortgage interest, insurance premiums, and repair and maintenance costs. Also, you may be eligible for depreciation deductions, which are calculated based on the cost of the property and its useful life. Talk to a tax professional to make sure that you’re taking full advantage of the available deductions.
If you don’t have it already, set up a legal entity for your rental properties. This can help you to reduce your tax burden and protect you from personal liability.
Make your listing a star
This should be a top priority if you don’t have a tenant and are looking for one. Many prospects looking for a new home look online; the first thing they inspect is the visual side. They scroll through photos to see if the property is to their liking and if they picture themselves living there. Allow us to share some of our best tips for good visuals:
- Make sure everything is clean. Doing a little cleaning before taking pictures goes a long way. See that no dirt spots are visible, nothing should lay on the floor outside of furniture, clean the pool, and arrange things so that it appears to be visually pleasing.
- Focus on the best features of the property. Select the features that will be most attractive to potential buyers and make sure that they are highlighted in the visuals. For example, if the property has a beautiful garden, make sure to include photos of it in the listing.
- Hire a photographer. We highly advise against taking photos with your phone. Sure, most smartphones nowadays have high-quality cameras, but let’s leave them outside of business. Contact a photographer whose work you’ve verified and ask them to come for a photoshoot. They will come with professional equipment, including lights. Lighting is key when taking such photos; the difference between the photos taken with them and without is massive. A good editor should take the photos to the next level.
- Remember to take photos of the most important areas, such as the kitchen, bathroom, and bedroom. Furthermore, if your house has cool amenities or features, make sure to include them. Maybe it’s a hidden library, a secret pathway, or a window overlooking a beautiful landscape. This will make tenants put your property above others.
Make the most out of your space
Do you have a garage, a storage room, or even a basement that nobody uses? An option that could add to your income stream would be to turn that space into an additional bedroom to rent. According to this Las Vegas property management company you can easily create a lovely room with the necessary furniture and rent it for a lower price. You could also use it as a paid storage space or turn into into a cool amenity, such as a sauna or library.
Work with a property manager
Since you’ve got to the end of the article, we’ve got a bonus, something easier than any of the above. A property manager can make a huge difference in your property’s profits. They’re trained to see and seize possibilities of making a profit. For a percentage of the rent amount, you can sit back and relax while you see the numbers growing.
Conclusion
These are among the top strategies you could employ to increase the profitability of your unit. The strategies are diverse, and they help in different ways or respond to different needs. If you like the ideas and want to improve your chances of making amazing profits, we’d love to hear from you.
Get in touch with us today and learn more about our services.
