You’ve heard it time and time again: Leasing your condo unit is one of the best ways to generate passive income.
A lot of people prefer to live in condominiums so that they can have easy access to lifestyle comforts and conveniences. In fact, if your condo is strategically located, easily accessible, and priced fairly, you won’t have a difficult time getting tenants. But even though you need minimal effort in maintaining your passive income source, a little strategy to make the most out of your investment goes a long way.
Check out these five tips on how to increase the value of your unit and maximize your profits:
#1 Screen your tenants
You don’t want to spend a lot of time and energy trying to get them to pay the rent, so it’s important to identify any red flags right away. These include having a prior eviction, having an unstable job and income, or refusing to pay the deposit before moving in. It’s best to avoid these types of clients for your peace of mind.
#2 Consider short-term leases
If you want to make the most money out of your investment, you can opt for short-term leases. You may not have a steady tenant, but you can charge more to those who only need a place to stay in for a few days or weeks.
You can make your place more attractive by adding other products or services in your offerings, thus giving you more income. Offer laundry or housekeeping services for those who’ll only stay with you for a few weeks. It’s best to research about the things that your target market needs so that you can offer the best add-on services.
#3 Give long-term leases to students and office workers
Long-term leases may offer lower rent and discounts compared to a leasing contract that only lasts for weeks or months, but it provides passive income stability. This way, you don’t have to look for tenants every few months since you have a steady stream of profit for at least a year.
Those who go for long-term leases are usually students and office workers who need a place that’s near their school or workplace. If your condo is centrally located with useful amenities, then it would be easier for you to find such tenants.
#4 Be strict about the timely payment of rent
While you want to maintain a good relationship with your tenant, you should be strict about the timely payment of rent. If he doesn’t pay on time, then enforce a late fee. Late payments not only get you stressed, you also “lose” money in terms of opportunity cost. Make sure these items are detailed in your contract.
#5 Inspect your property regularly
Conduct property inspections on a regular basis. These inspections will help you identify and address maintenance issues immediately, avoiding more costly problems later on. Keep a detailed record of these inspections as well as any maintenance work you had done. The record will help you monitor the condition of your property. Another benefit of these inspections is that you get to observe whether your tenant is following the terms of the lease faithfully.
Real estate properties increase in value over time, making them profitable investments in the long run. If you’re thinking about getting a condo unit for investment purposes, check out the following Avida Land properties and find a neighborhood that best suits you.