The rental business can earn you lots of money, but it can also end up costing you a lot of money as well. Of course, no investment comes without risks, but here are some of the ways you can help increase the amount of money you make while renting out your property to make sure you can cover all of the associated costs.
Reduce your costs
Other than increasing the rent, which would probably put off a lot of customers, the simplest way to increase your profits is to reduce your costs. Although there’s very little you can do about your mortgage payments or any taxes you need to pay, there are a number of ways you can reduce the costs of things like your energy bills. The way utility bills work can differ massively around the world, so check what the policies are for the area you’re renting in. For example, in England, people can’t pick and choose which water company they’re with when buying a residential property. They are simply stuck with doing a deal with their local provider. Whereas if you’re renting out a business building, you are able to shop around for the best value deal.
Whilst this might sound complicated and something that would involve a lot of phone calls, quotes, and paperwork, it can be as easy as filling out a form on the internet. Simply find a comparison website, like www.utilitybidder.co.uk, and share some details with the website. By simply entering the postcode of your business property, you can see all of the deals available to your building. It costs nothing but time to find out whether you could be saving lots of money on your future bills, so you’ve got nothing to lose by finding out what other deals are on the market.
Offer extra products and services to your renters
As a renter, you might think the only thing your customers will be interested in is a roof over their heads. In fact, there may be other products or services that you could offer them to increase the amount of money you can make from your property. For example, many people are highly likely to take up the offer of a cleaning service if they’re too busy to keep on top the chores while they rent the property. You could even offer basic food deliveries of things like milk, eggs or even fresh fruit and vegetable boxes if they’re too busy to be able to get to the shops.
Advertise other services to businesses
If you find your property is rented for short amounts of time by tourists, you might find that they not only want a place to stay, but they want advice on the best things to do while they are staying at your property. If this is the case, you could approach local businesses and see whether they will pay you to advertise their business to your customers. This could be something as simple as leaving flyers about the business in the property, to even offering your renters an exclusive deal where they could save money if they visited a business while staying in your property. You could even allow them to advertise on the same website where you advertise your property if you have control over your own independent website for that building.