Rental property investment is currently seeing thousands of new entrants every day. This is because most people seek lucrative options to diversify their investment portfolio and generate passive income.
However, the rental investment may seem intimidating if you’re just starting out. The truth is investing in rental property is not a get-quick-rich scheme. But you can’t ignore it as it is a valuable source of passive income.
Most real estate investors indeed earn millions of dollars in the industry. But the amount of money that you can make is dependent on the following:
- Your short-term rental property
- Organizational procedures you use on your short-term rental
- Marketing strategy for your vacation property
Once you master all these, you can be confident that your rental property will run well. Understanding how to earn from your rental property, whether it’s your side or a full-time gig, is essential.
Leveraging the right tips opens room for you to become part of the influential rental property investors. The short-term rental market is booming, and the trajectory will continue to rise in the coming years.
Besides, your persistence and industry knowledge will equip you to become the next market tycoon. Let’s explore some lucrative ways you can make money on rental properties, shall we?
1. Research on Your Rental Property
You need to equip yourself with real estate industry knowledge to be successful. First, you need to understand pricing and determine the best listing sites for your rental property. This is essential if you’re in the short-term rental space, as you will keep up with the rental tax regulations.
This is possible, all thanks to internet availability and rental property online sites. Before, this information wasn’t easy to get since you had to study nearby rental properties manually and read tons of real estate magazines and books.
So before starting your rental investment journey, you need to research to pave the way to profitability.
Besides, you can leverage many available resources to help you with your investment today. Techvestor focuses mostly on short-term rentals, and they have insights on how you can maximize your investment. If you’re busy and don’t have to do the homework, you can look for such platforms to help with your investment.
They do most of the research for you, starting from the right location, property, etc., which can yield profits for your investment. Industry knowledge helps you avoid first-time mistakes and maximize your profits from rental properties.
2. Don’t Focus on Saving Money When Starting Out
Everyone wants to maximize profits and lower their expenditure on investing. When considering the profits you may get, taking shortcuts in rental property investing might be tempting. The sacrifices you’re willing to make to save include:
- Not outsourcing some of the work to maximize your profit share.
- Ignoring home improvements in the quest of saving money.
Doing house renovations before the visitors arrive is a great way to boost your property margins. Being frugal may be a wise decision at that moment, but it limits your earnings from your rental property.
Upfront home renovations help to boost the value of your property and increase your earnings. Besides, a vacation rental management company helps to ease your investment journey.
Working with a cleaning and property care company is a sure bet if you want to keep your home at a five-star level. Also, hospitality firms may help you pull all the triggers that can optimize your investment.
In short, ensure your rental property has all the necessary features that will attract visitors to book. When you focus on saving more money, you might lose more.
3. Make Your Rental Property Pet-Friendly
69% of Americans have pets in their home. Today most pet owners treat their pets as part of their family. So in your short-term rental strategy, you will want to consider this demographic to maximize your profits.
It’s natural for this demographic of people to request short-term rentals that allow pets when they travel.
So once you make your rental property pet-friendly, it will attract a more extensive range of visitors. Naturally, most pet owners understand that pets might be a bother, so they may be willing to pay more per night to cater to them. At the very least, they’re willing to pay an additional cleaning cost or a surcharge.
To make the deal more attractive, you can include extra comforts like:
- Pet beds
- Toys
- Biscuits/treats
- Extra towels and blankets
Besides elevating the experience for your guests and pets, they also help to preserve your furniture. Moreover, this will attract many owners as they will feel that you appreciate and care for their furry family.
But you can’t ignore the disadvantages that pets come with. For instance, your rental property will require more thorough cleaning and sanitizing. This is essential as it will help to prevent the next guest’s allergies. Moreover, there is a greater possibility of damage like:
- Chewing furniture or electric cables.
- Pooping inside your house.
- Hair or fur on all over your furniture and bedding.
- Barking and whining of the animals may be a nuisance to the neighbors.
You need a mutual understanding with your visitors when you allow pets in your rental property. So including a pet policy and asking for higher damage is necessary. The pet policy and the damage fee should outline the consequences in case of damage and annoyance.
Besides, bringing additional pet items may be impractical or a headache depending on your rental property.
4. Manage Your Calendar
If you don’t manage your calendar well, you may experience booking issues. Ongoing calendar management will help prevent unknowingly double booking.
Because once double booking happens once or twice, it may result in lost revenue as it will turn away potential guests. Besides, this also contributes to a poor guest experience.
Calendar management is more complex and challenging if you have listings on other websites like Airbnb, Booking.com, and VRBO. Ensure you invest in the right tools if you want to manage your calendar effectively.
Besides, calendar management helps you to manage your rental prices. You don’t want to charge high prices during the low season and low when it’s the high season.
It’s essential you keep up with the dates and events so that you don’t miss out on updating your short-term rental prices.
Final Thoughts
You have to be strategic when it comes to rental property investment. It’s not practical to randomly increase the price of your short-term rental and hope that guests will pay.
Carry out extensive research before starting with your rental property investment. Also, work with experts regarding most of your rental property investments. This helps ease your journey with real estate investing and maximize your rental property profits.
Invest in essential tools to help ease some activities like managing your rental property calendar. Your property should have an expert feel to attract visitors who’re ready to pay more for more.
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
