The real estate industry, for the first time since 2009, experiences an increase in the vacancy rate. As a landlord/property owner, you should see it as an opportunity to maximize your business, instead of seeing it as a downfall.
The increasing supply of space means more competition for you, but it also opens an opportunity for upgrades and changes. The more you upgrade your space, the more chances you have to increase your rental profit later on.
Here are some ways to maximize the vacancy period and grow your rental profit later:
1. Be specific about setting target tenants
The key to achieving your financial goals is to identify how much you need. From setting that goal, start identifying what kind of tenant you want and need.
Nothing is wrong with being specific with your target tenants. The same goes for other products for sale. Once you’ve identified them, you’ll know their preference for a home. You can then adjust your property accordingly to meet their needs and expectations.
2. Take advantage of property tax deduction
The state and the local government assess your property tax annually. To make the most out of your property, list down all the maintenance costs and repair expenses you made. Try to deduct the cost you incurred from buying the property as well. Add the mortgage interest too. That way, you can reduce your taxable profits and maximize your federal tax return.
3. Expand your property opportunities
Think of other ways you can increase your property income. If your property is in a great location and has adequate foot and eye traffic, consider allotting an ad space in it. You can target small business owners that are in need of a venue to promote their newly opened shop or a nearby cafe. It may not be a regular source of income, but it can bring in a few good dollars a month.
If you have an extra small room or space in your building, you can also rent it out as storage. You can be creative and think of ways to earn more.
4. Upgrade your ways
To make sure your property gets noticed, consider enlisting it on online property sites. You may want to hire a property manager to work on the small details of property selling for you.
Property management companies have professional brokers to assist you in your search for your target tenants. They also have online management features like an automated rent collection system, financial accounting, and 24/7 emergency services.
It is important to work hard for your property, but maintaining one will require full attention and hard work. Let other people do these for you so that you can focus on the income strategy and implementations.
5. Increase your rent
If you’ve considered upgrading your unit, you have more reasons to increase your rent. In case you’re not doing any changes or renovations, it is still important to calculate if you’re current pricing is still profitable.
Now that the vacancy rates in real estate are increasing, the more reason it is for you to not settle for less. If you price your unit less, you may get a tenant, but it also means you’re throwing away a year or more of a potential bigger income.
Learn how to play the number game. To make sure you’re on the right track, you can check other property sites and see how they price their current listings. You may also consult with an expert or seek help from professional property brokers.
Conclusion
Handling a property for rent can be overwhelming, especially in challenging times. It is best to partner with a professional property management company to make sure you still get everything taken care of for you.
If you’re looking for property management companies in Brooklyn, Manhattan, and Queens, New York, get in touch with us. We are award-winning property management, specializing in property management and real estate brokerage services. Browse our site to learn more about our services.