If you’re new to real estate investing, one of your first questions might be how you can get started bringing in a supplementary income using your property. In fact, real estate investing is one of the best ways you can earn side income because once you have things up and running, you don’t necessarily have to continue to put in a ton of work to keep pulling in money. Of course, there will be some routine maintenance to take care of and occasional tenant questions to answer, but the reward can be extremely beneficial!
To help you make the most of your investment and ease your transition into property management, we’ve created a guide with tips on how to make supplemental income with your real estate investments.
Put in property work upfront
If you’ve invested in an older property or one that’s a complete fixer upper, it’s recommended that you get started on your home renovations ASAP. Why? There are several reasons you’ll want to take care of these issues ahead of time:
- A property that’s in good condition rents for higher rates
- Finding renter applicants is easier when you have a nice space to offer
- Less issues means fewer complaints or concerns from tenants
- Tenant laws require you to create a space that’s inhabitable for renters
- When your property is well taken care of, you set a precedent for your tenants
Whether it’s fixing a leaky sink, refreshing peeled paint, or installing low maintenance landscaping, making your property look as desirable as possible to renters should be among your top priorities. Use HomeAdvisor to find professionals to start improvements right away.
Simplify your advertising process
One of the most time-consuming tasks involved in property management is listing your space up for rent, especially if you have multiple real estate investments to manage. The good news is, we have some tips you can use to simplify your process and manage your time more effectively.
- Have professional photos taken: They say a picture is worth a thousand words, and the adage rings true—especially when it comes to property listings. People who are searching for a place to live typically don’t have a ton of time to spend sifting through each and every listing they find online, so why not make it easy on them? Once your place is in tip-top shape, consider hiring a photographer to take pictures of it. Sure, iPhone photos could do the trick, but a professional photographer knows tricks to help you stage and capture the best features of your rental which can help you attract the best renters possible.
- Post multiple listings on one platform: There are many different sites you can choose from when it’s time for you to post your property listing, but the easiest method by far is to use a multiple listing service that posts your listing across the web for you. Realtor.com offers multiple listing, all you need to do is provide details about your property and your ad can reach thousands of prospective tenants in your area.
Recognize the value of good tenants
When you’re leasing your rental property, there are few things more important than finding reliable and respectful tenants to occupy your space. For one, they’ll be living in it, so you’d ideally want someone who won’t trash it. And more importantly, your tenants will be the ones contributing to your investment fund—if they don’t pay the rent, your investment definitely won’t be as profitable as you’d hoped. But finding stellar tenants isn’t always so simple.
When you’re going through the application process, it’s important to take screening seriously so that you can evaluate whether or not a tenant will be one that you’d like to have living in your home. SmartMove background checks can help you run credit reports, view eviction histories, and ultimately, help you make more informed decisions as you prepare to lease your property.
Consider additional avenues for revenue
Long-term rentals aren’t the only way to go if you want to make money off of your real estate investment. Many property owners have found that renting your house on Airbnb is just as profitable as leasing to tenants long-term. Of course, this landscape is different so you’ll need to consider the risks, rules, and profitability before committing to vacation rentals.
With these tips in mind you’ll be ready to make the most out of your real estate investment! Happy earning!