Being a landlord entails more than just collecting rent at the end of the month from your tenants. It means going going out of your way to ensure that all your tenants are comfortable and that their living conditions are good. Since owning rentals is a business, landlords in New Jersey seek ways on how they can increase their revenues from units they own. Find out how you can generate more revenue and maximize your returns in this piece.
Simplify The Payment System
No tenant wants to have a difficult time paying for their rent. Having a very simple payment system will assure you of fast rent payment. One of the ways is through using new technology such as online payment instead of waiting for bank cheques or mail services. One of the platforms you can use at your comfort is PayPal, which is universal. So, no matter where you will be traveling, you will still receive your rent payment.
Ensure Constant Monthly Revenue Stream
New jersey rents are undoubtedly one of the highest nationwide. Therefore, if you still have loyal tenants you could take advantage of this. Start by keeping your monthly operating expenses low and your tenants’ rents still high. You may use energy-saving technology to save up on energy expenses e.g. solar panels for power and energy-saving bulbs. If your property taxes and liability insurance fees are less then you stand a chance of reducing your operating costs and increasing your profits. This is how you reap from your real estate investment.
Be Amiable To Your Tenants
Let us face it, not all tenants are pleasant. Not all landlords in New Jersey are friendly too. But for real estate to be profitable a common ground has to be reached first. The best way is to first make your tenants feel at home and not as if they are living in someone else’s home. This will ensure that your tenant will keep on living on your premises therefore, you will have a continuous flow of rent income. Tenant retention should be one of your main goals as a landlord if you want to be profitable in the real estate industry.
Stick To Your Payment Dates
As a landlord in New Jersey, you need to be firm with the date rent should be paid. Never condone late payments since it may end up being a habit by some tenants. Do not let things slide. Have a fee schedule in place and let them know what are the consequences of not paying on time. However, make sure you do this in a firm but respectful way. Remember tenant retention should still be at the back of your mind.
Tax Advantages
Been a landlord gives you a chance to maximize your tax advantages thus, increased benefits on your end long-term revenue. You see rentals are considered as assets therefore, you can deduct your mortgage interest, insurance rates, marketing and legal fees. All these are considered as legal practices by the IRS.
Property Value Appreciation
Unlike other assets like the stock market shares, real estate is less volatile. Property value generally goes up. There may be slight downs but on average they normally go up. Being a landlord in New Jersey is profitable over time especially with increase of better social amenities. It may take longer to improve but eventually, the value goes up.
If you are looking to invest in a rental property, you need to work with an experienced real estate agent in New Jersey to help search for property depending on your budget. It is also advisable to keep the same realtor to help you acquire tenants and advise you on how you can generate more revenue from your property.
