Entering the rental housing industry is both a big step and a big investment. Perhaps you started out small and you’ve only got a property or two under your belt, but now you’re looking to expand your rental property portfolio. Doing so can seem like an intimidating task, but these tips can help you find your footing.
- Work to Increase the Value of Your Properties
In order to increase your revenue (which you’ll need to purchase new properties), you need to put in the work. Renovate your current properties, making upgrades and updates to justify charging a larger amount of rent. By increasing the value of your property, you’ll increase the speed at which you can grow your portfolio. Don’t feel like you always have to remake the whole house; sometimes a new coat of paint can make a big (inexpensive) difference. - Don’t be Afraid to Cut Your Losses
You don’t want to be that person who keeps beating a dead horse. If you have an investment that’s just not making money, don’t be afraid to let that investment go. Holding on to a dead investment just hurts your portfolio and makes it more difficult for you to invest in a property that could actually contribute to your revenue stream. - Consider Getting Some Help
As you obtain more and more properties, managing them all may not being something that you can do alone. Look into hiring a property manager, or even a property management company. As your rental property portfolio grows, it may be unrealistic for you take care of all your properties and the needs of your tenants. Don’t let the value of your investment decline because you can’t be everywhere at once. Trust a property manager to help you stay on track. If you’re not ready to give up the reins of property management just yet, consider utilizing a real estate agent. Finding someone knowledgeable about the industry and specializes in rentals can help you manage filling your vacancies.
If you’ve found a passion for rental property investments, it would make sense that your next logical step would be to grow your rental property portfolio. While it can be a slow process at times, you should be quite successful if you handle it all correctly. Do your research and consider these tips, and watch your portfolio grow!
