Investing in real estate today is still a great way to secure wealth in the modern era. But you really have to know what you’re doing to make your investment dollars count.
Recent reports have shown that since the onset of the COVID-19 pandemic, rental prices have skyrocketed along with the popularity of vacation rentals. So no matter the purpose of your rental property, you’re currently holding a prime asset.
But what do you do when you’re sitting on a rental investment but you’re not making any money? The problem might be that your investment lacks the value and attractive quality that you’ll need to make a profit. And depending on the purpose of your rental, you’ll have a few options to consider.
If you’re ready to liven up your rental investment, attract new renters and add more value, the following will provide helpful advice.
One of the easiest ways to make money on an investment rental is to place your money in the vacation rental space. After all, just about everyone loves a nice vacation. And if you can offer customers a deal they can’t pass up, you’ll be well on your way to greater ROI.
But vacation rentals need to have appeal on many levels in order to pique interest and entice vacationers to choose your property over the competition. And in order to meet this goal, you’ll need to focus on your amenities.
Just like when you began investing in rental properties, there were elements that drew you to the property that you chose. Perhaps you saw potential or a diamond in the rough. No matter what it was, it might still need a bit of work.
If you want more renters, offer more perks. Amenities such as home entertainment options, a pool, hot tub, sauna, toys, and movies for the kids, and mentioning close proximity to major attractions are all things that people look for in a vacation rental.
If you’ve invested in commercial property, you were probably hoping to make money hand over fist. And though commercial rentals typically have higher rental costs, if you’re not making any money now, this could become a financial disaster down the road.
Commercial spaces need modern options. And as long as your rental space is in a prime location with plenty of activity, i.e., near new shops, great locations for businesses, close to popular entertainment and restaurants, or near developing neighborhoods, you’ll be in pretty good shape.
But if you’re not in the best area and you have little thoroughfare, you’re going to have to think outside the box in order to bring in renters to your space. As such, marketing to startups, or perhaps modernizing your space with new tech or offering free security might be an incentive to new business owners looking for a place to start.
Rental homes are always in a market that ebbs and flows with the state of the local and national economic standings. But even if you’re in an economic downturn, there are several ways that you can increase the value of your rental.
For example, having a professional landscaping design can add curb appeal, and this is likely to get you more renters looking at your property. Additionally, upgrading your appliances to energy-saving models might also entice a new demographic of environmentally conscientious renters.
All in all, there are many ways to add value to your rental home. And some of these methods include modernizing home design, offering window treatments, furnishing your rental with a refrigerator or a microwave, or even adding a small playground for the kids and a fenced backyard.
If you’re going to make money in the investment rental space, you’re going to have to increase the value of your rental in order to entice renters. And the more you can deliver, the more likely you are to make a significant income from your investment.