Know Your Leverage Options as a Landlord
A Guide to Owning Multiple Rental Properties
Whether you are a seasoned rental property owner or just getting into the business, leveraging one property to cover the expenses on another is a great way to cover unforeseen costs as a property owner. Being able to leverage one property’s income to cover another is key to building a profitable rental portfolio, increasing cash flow, and achieving the financial freedom needed to make money in the world of real estate.
Know the Market
The first tip to making money off of your current rental property to buy or maintain another is to know your market rental value. Through research and analyzing the rental comps in the area, you can set a fair and reasonable price for your rental property. If the rental home is priced competitively, and you took the time to perform a relevant real estate market analysis, you will be able to find a qualified tenant and start making some money!
Increasing the value of your rental property through improvements will ultimately increase the rental income. By making relevant repairs and upgrading the property, you will make the rental property appealing to potential tenants and increase the rental fee.
Monitor Rental Expenses
Another way to increase the money made off of a rental property is to monitor your expenses and allocate funds appropriately. The ultimate goal of being a rental property owner is to make enough money from one property to use on another so that limited money comes out of pocket. To do this, it is necessary to track your cash flow so that you are using it in a practical manner.
Being able to leverage one property’s income to cover another is key to building a profitable rental portfolio. Knowing the market, making your rental property desirable, and tracking your expenses are just some of the ways to make sure your money and property are working for you!
At Oak City Properties, we have been taking care of rental properties for years! Our full-service property management company will help you find and buy new rental properties to grow and diversify your portfolio. We will also market the property, locate prospective tenants, and show the home to qualified applicants. Once a tenant is placed in your rental property, we will: collect rent payments, assess and collect late payment fees, provide 24/7 maintenance, help with accounting/tax services, and deal with any court appearances in the event of an eviction.
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