Buying an Investment Property? Here's How You Can Maximize Your Revenue.
Whether you're buying a ski-in/ski-out condo at your favorite resort, picking up a small home in a busy tourist area, buying a property in your local market or buying a vacation beach property, for short-term rental purposes can be an excellent investment that quickly begins to provide additional revenue. Let's take a quick look at a few steps that you can take to maximize the revenue that your investment properties bring in each month.
Upgrade Your Home to Give It a Luxurious Feel (Vacation Rentals)
It should go without saying that if you want your home to rent for a high price it has to have a significant amount of value behind it and does not scream a lot of upkeep or maintenance. After you purchase the home, spend some time on upgrades that help to enhance the home's beauty and usability. If you are supplying a furnished property, possible each sofa should be a sofa-bed so that additional guests can stay the night. Upgrade the televisions, have Wi-Fi internet access available and provide a phone number that guests can call if anything goes wrong. You can put a block on it so no long distance calls are made from the rental. If it is an unfurnished home, make sure all maintenance is done, freshly painted and clean, clean, clean, looks manicured from the street, all landscaping trimmed and gives nice curb appeal. If long term rental a year or more, give the tenant an incentive, maybe a bonus at the end of the year if the house is well kept during their yearly rental or even a bonus twice a year. A bonus usually comes in handy around the holidays.
Professional Photos and Copywriting
If you're renting your property out to short-term or vacationing tenants you're most likely going to use online services like VRBO, HomeAway or AirBnB to attract new business. While these sites have a lot of visitor traffic you're also going to face a high level of competition from other property owners in the area. It's worth paying a professional photographer to take pictures of your home as well as having a professional copywriter handle the sales copy for your listing. These are one-time costs that can help you to defeat your competition and close high-ticket clients especially in your vacation rentals.
Cater to Large Groups or a Niche Crowd
There are a number of "niche" travelers out there and if you can cater to these groups you'll find that you're able to charge more than the average vacation property. For example, you may be buying a home in a popular wedding destination that can be marketed to couples who are being married. If you're buying a larger 3 or 4 bedroom home, be sure to note that it can house large groups who may be traveling together.
Referrals and Repeat Business
Finally, don't forget to ask your clients to refer you to their friends and family who many want to stay in your vacation rental. Your best customers are the repeat ones for your vacation rentals and tenants that stay for a long time in your long term home/condo rentals.
If you think you want to get into the investment market and purchase your first investment or have some or many and want to add another one to your portfolio, call me! Love to help!
Message from Karen:
If you are thinking of Buying, click on the button below (Click here to search ALL listings) and start searching all the available homes for sale in ALL of Greater Louisville and surrounding counties. If you find anything of interest and would like to check it out, just call, text or email me and I would be happy to set up an appointment for you to check out the property.
If you are thinking of selling, call me for a FREE home evaluation in your neighborhood, from staging, pricing, housing values, interest rates, how appraisers are valuing properties, now that the guidelines have changed. I would love to sit down and talk with you. Just call me and let me know how I can help with your real estate needs, buying or selling or both. I give exclusive representation. If you are not sure whether you want to sell for fear of not finding that perfect larger home, click on the Search All Area Listings properties below and start searching the areas and see what is out there. I do have a list of contractors whether you decide to remodel or purchase or both. I can supply you with a list of contractors. I would be honored and happy to help you.
This Blog was written by:
Notary, ABR, AHWD, CRS, e-Pro, GRI, SFR