Investing in long-term rental properties can be a risky move. But as real estate star Adam Hochfelder explains, with every investment there comes a certain risk. Because of that people have different experiences when it comes to investing in real estate. When it comes to land lording, the key to success lies in maximizing your return on investment. If you hold property as an investment, it is only logical that you want it to be making as much as it can for you. Here are some simple guidelines suggested by Adam Hochfelder that can help you to increase your rental returns.
If you want your asset to be managed properly, make sure you find a good property manager. A good property manager is hard to find. He should be licensed, have some experience in the industry, have knowledge of the area and the types of tenants your property is likely to attract. If you feel capable of doing all that, you can try and manage your own properties. By doing that you will not only save on paying a property manager but more importantly get a better idea of what is happening on your property. However, Hochfelder warns that self-management is more suited to experienced investors.
Those who have not increased their rent for years might consider increasing the rent. First, make sure that you know the rents in the area. Do your research and find out what the market rent is. Then when the opportunity presents itself you’ll be able to increase your rent. Also, you may find that there is room to increase your revenue a small percentage each year. This way you’ll remain competitive, and there is no reason why you should give this up.
Updating the property can also be helpful. A new coat of paint or new floor coverings can increase rent by a few percents. In addition, Adam Hochfelder informs that if you decide to install new kitchen appliances that could increase the rent by a further 10%. Apart from only increasing your rental yield, updating rental properties also helps to attract a better quality tenant.