What if I told you both of my 1-bedroom condos bring in almost $40,000 in rental income per year and that I have real estate clients capturing $50,000+ from their 1-bedroom condos? Most folks I talk to are surprised and ask how do you get that much and why aren’t I getting better numbers?
Here’s the thing – Rental income is huge component of owning a successful investment property and then to take it a step further – to selling an investment property for top dollar.
Time out for a quick be honest moment – We are not property managers – we are Realtors who know that if we can help you capture higher rental income now – when you decide to sell we will be able to help you sell faster and for more money. That is where our interest in this subject comes from.
Why isn’t your rental income higher?
Because we sell so many properties (135 last year alone – mostly investment properties) we see a lot of different types of rental properties, interior design styles and management set ups and, as you can imagine, some rent better than others. So, we looked to see if there are factors that are common to high rental properties and here is what we found:
High Earning Properties:
Are Updated: They have “new or newer” finishes. Granite and Stainless Steels are a minimum standard now for high achieving rental properties. Many have wood look floors, fresh and current paint colors, big TV’s – even in the bedrooms and good quality clean furniture. People will pay more for a property that they walk in and it feels new. Note: Properties get outdated after about 10 years so if your property hasn’t had a makeover in the last 10 years it’s outdated.
Look Good On the Internet: They have professional level pictures and/or videos. Renters decide if they are going to rent your place based on the pictures and/or videos they see online. High quality photos make your property look a lot better and people will pay more if they think a property is better.
Have Good Proactive Rental Managers: Whether it’s the owner operating a VRBO setup or a professional management group the properties the do great rental numbers have someone who is aggressive about answering customer questions and quickly responding to inquiries. High earners don’t let renters “move on” to other properties.
What is good rental income? Click here to see what properties like yours should be renting for.
A Little Be Honest Time
If your rental income is not at the high end of the spectrum take an honest look at your property and ask yourself:
- Does it need to be updated?
- Do you have professional level photos and/or video?
- Is your Rental Manager costing you money?
You may be surprised how inexpensive it can be to bring your property up to the level where it can capture top level rental income and it’s certainly worth the time to explore your options.
Another time out for a quick be honest moment – We are Realtors who see and sell a lot of property and know that if we can help you capture higher rental income now – when you decide to sell we will be able to help you sell faster and for more money. With that in we can give you direct you to interior design folks