Increasing Profits On Rental Investments
Many investors spend the first years of their careers looking for and purchasing properties for little or even no down payments. Several of such properties have not been properly maintained by their previous owners and desperately need to be repaired and brought back up to its true potential. Investors are able to increase value on such properties in many ways.
Raising Rent
Check the cost of rent in the area around the property that you purchase. You will usually find that the rent 
is considerably lower than the current market. Make a few improvements to the property, such as a fresh coat of paint on the exterior or fixing up the landscaping. At the same time, send out your rent increase notices.
Tenants will feel that they are getting more value for the extra expense. It is common to give tenants at least sixty days notice to allow time for them to look around and determine that, even at the higher rate, they are getting the greatest value.
Freshen The Property
Expectedly, when you raise the rent, several tenants will decide to move. This works to your advantage. Take the opportunity to make some repairs and additions to the property, such as new carpets or countertops. This will make the property appealing to investors that are more serious.
Rent To Own
Finally, once you have fixed up the property and increased the value as much as possible, offer the option to purchase the property when new tenants sign the lease. You can collect money upfront that you will keep should the tenants decide to purchase the property.
This will get your tenants thinking more like homeowners and less like renters. If they have the option to purchase the property, they are more likely to treat it as if it were their own.
In just a few simple steps, you are on your way to hanging up your landlord hat and becoming a serious real estate investor.
Property Options Australia
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Tags: increase property value, investment property, Property, Property Options, property options blog, real estate investor, rent, rental property
April 30th, 2009 at 6:22 am
[...] who can point out possible pitfalls. Once you have enough information, think about the current value of the property as well as how it will increase over [...]
May 11th, 2009 at 6:18 am
[...] greatest difference that you will find between rental properties and other types of property investments is the work and time that you must put into maintaining the [...]
May 13th, 2009 at 2:15 am
[...] Improvements to the property can add value. If you do as much of the work yourself as you can, as opposed to hiring professionals, you will save money and increase your profit from the deal. [...]
May 14th, 2009 at 6:35 am
[...] You see, when you purchase property options, you are not buying the actual property. Therefore, you are not liable for maintenance or rental issues, and simply sit back and collect your fortune. If you are not satisfied with the profit you earn, you have the right to add value to the property in order to increase profit. [...]