Whether it is the first time you have delved into the property development market, or you have a portfolio of properties, here are a few tips to help you get the best returns possible.
Focus On Long-Term Tenants
Although this is a business, like any other business getting regular income is vital. However, having a high rate of turnover in tenants can lose you money in terms of advertising, fixing or replacing damaged areas of the house and it may also get you a poor reputation, which can impact on your overall profit and ability to rent property out. Additionally, whilst your property is empty there is no money coming in for that property, which may not be vital if you have several properties, but as you are starting out it can have a massive impact on your property development business.
Therefore, by focusing on gaining long-term tenants and attending to their niggles or repair issues promptly, you are not only receiving a regular income, but you are also shoring up your reputation as a good and valuable landlord, which will pay dividends on your other properties. Never underestimate the power of reputation.
Keep Rent Inline With Market Need
You need to pay close attention to how the market fluctuates in areas where you have your properties. If you price your rent too low, you will not only lose out financially, but you may attract the wrong sort of tenant. You should raise the rent at least annually to account for rise in taxes, inflation, cover cost of repairs, etc. You should also consider raising the rest once a property is vacated, as this is the perfect opportunity to conduct research and ensure you are asking a fair rent for your property. Ask for help from New Jersey realtors, who will be able to advise you on appropriate rental for areas of New Jersey, and they will also be able to act as a management agent for your property as well.
Don’t Pay Too Much Tax
Unless you are very familiar with tax laws, you should talk to a tax consultant, as they can give you the best advice about paying your taxes. There are various ways that you can save or deer taxpaying and this will help tom increase your bottom line, allowing you to invest in more rental properties. Deferring tax is a popular way that many property developers take advantage of to not only have extra money to spend in a current tax year, but also gain a great tax advantage in a retirement account.
Smart Energy
There are many incentives around to attract people to invest in energy smart appliances. Therefore, if you are looking at replacing a boiler you could benefit from a grant that will either pay for or go some way to financing a new boiler.
NJLUx.com can help you locate and incest in a range of properties to increase your rental portfolio. We can also help manage that property for you and vet all prospective tenants. Contact us now call for details.
