Getting the maximum return on investment (ROI) for rental properties is the best way to obtain repeat and referred business. Understanding what can bring a maximum ROI can be the selling point that a Real Estate Agent needs to convince a buyer. Here are 4 trends to improve a rental property’s profitability.
‘Hot’ Tenants More useful to property managers than real estate agents is usage of ‘hot’ tenants. Using ‘hot’ tenants can save money on advertising and time as these are pre-approved renters who have indicated what kind of property they are looking for and are perfect for a quick move-in process.
Houses > apartments In major cities there is an oversupply of apartments which creates high demand for houses by renters (a selling point for future investors) as it provides added privacy, flexibility with pets and freedom to make the residence their own.
Long-term leases Having tenants with long-term leases guarantees monthly rent and protection for the landlord. Leasers can calculate their return on investment over the period which often has a higher and stable return.
Rentvesting Some homeowners are looking to save money by renting their properties while renting themselves. This allows them to maintain investments and live a more flexible lifestyle.