Landlords have a bit of a bad reputation in some circles. Some people are under the impression that all landlords are cut from the exact same cloth and that they'll do anything they can to undermined the tenant and boost their profitability. It's true that if you've decided to invest in real estate with the intention of holding and then renting that property out that you're doing so to make a profit. Isn't that the point of an investment? You are putting money into the property by first buying it, then making any repairs or upgrades that need to be made, marketing it, and then finally going through the tenant screening process, all before making anything from the investment. That's a lot of work, and if you haven't hired a property management company to do it for you, that can be quite a lot of work. Is it worth it? It certainly can be, but the bottom line is that you do not invest in anything with the hopes of breaking even or losing money.
Now, we've all heard stories about slumlords that allow their properties to degrade to the point that they are hardly up to standards for what is considered as habitable conditions. It happens, but that doesn't mean that all landlords follow that path. It should be the goal of every landlord to find that balance between providing for the tenant's needs and making sure that their investment turns the best profit that it can. This means that you rent to tenants with a proven record for on-time payments and good behavior and you work to make sure that both parties abide by the agreements set up when the lease was signed. If you take care of your tenants, they're more likely to stay. If they stay that means that you're not going to have to spend the time and money that it takes to list that property and go on a whole new search for a whole new tenant that may or may not live up to the expectations.
Always be open to learning new ways to increase the profitability of your rental properties. Not every tip you read or receive will be right for you, but increasing your knowledge on the subject allows you to pick and choose what works for your property. Here are five tips to start out with.