If you have real estate that you can rent and thus make money, you can consider yourself quite a lucky person. Making money through real estate has always been very popular, and for good reason – it’s definitely something that can make you plenty of money on the side. However, if you really want to make the best out of your real estate, there are certain tips and tricks on how to increase your potential rental income. What are the things that you need to pay attention to other than keeping it neat and tidy?
Decrease the vacancy rate
Minimizing the vacancy rate should definitely be your priority, and in order to do that, you should do whatever you can to find a long-term tenant so that you don’t have to deal with turnover. However, if your tenant must move, the vacancy rate could be minimized if you post ads of the property the minute you learn of the move. If the demand in your area is very high, then you will have no problem finding another tenant. If your property is located in an area with lower demand, and your vacancy rate is consistently high, you may want to rethink the price. Another way to decrease the vacancy rate is offering a certain asset, such as a to-die-for kitchen or a beautiful garden (which is always a perk in places with beautiful nature such as Australia, for example).
Offer additional services
A thing that can definitely help you boost your rental income and also give you a competitive advantage over other real estate properties is offering additional services to your tenants. For example, your investment property can offer trash removal, commercial cleaning services or even maintenance once they sign the lease. They also might even be willing to pay a bit extra for all of these services to avoid having these responsibilities themselves. Another great idea for commercial real estate is introducing vending machines to the picture. Placing coffee, snack or drink machines in common areas can significantly raise the number of potential tenants. We all appreciate places where we can have a quick snack or coffee when in need. Finally, think about the parking and storage space, as these are also great ways to attract potential tenants and boost your rental income.
Invest in maintenance
Paying attention to the maintenance of your commercial rental property is imperative as it can, obviously, boost your rental income quite a lot. Also, bear in mind that commercial real estate properties accumulate more wear and tear than residential rental properties, so it’s always better to invest in regular maintenance. Not only is it cheaper in the long run, but it’s also going to give a feeling of safety to your tenants. Start with the small tasks, such a painting and checking the installations, and then proceed with the plumbing and electrical issues. You can opt for high-quality pipe relining in Sydney and other major cities in Australia and thus make sure that your plumbing is impeccable and that you won’t have any issues in this department in the future. It’s always better to invest a bit more in the present than spend a lot on repairs in the future. Also, you could arrange for routine checks and appointments so you’d know if there’s anything else that needs to be fixed or replaced.
Increase rent strategically
Even if you have long-term tenants, it doesn’t mean that you shouldn’t change the price of your rental. You won’t do this out of the blue, of course, but it’s always good to keep this in mind. This is why it’s always important to pay attention to the rentals in your area, and if you see that there’s a possibility to increase the rent, do so. However, you want your tenants to feel like they’re getting something from it, so it’s always good to increase the rent by changing the appearance of the rental property. For example, you might want to repaint the exterior or change the windows just when they are about to sign the lease renewal. This way, your rental increase will have an excuse and they will feel like they’re getting something as well.
Commercial real estate properties (and real estate properties in general) always give you a plethora of opportunities to earn more money, but it does require some investment. However, everything pays off in the end, and spending time and money on your real estate is definitely the key.