Do you own a condominium complex? If so, you are sitting on a potential goldmine that can provide a secure financial future for you and your family.
Investing in real estate is a great way to boost your finances and create a life you love. By owning real estate, you can take advantage of a variety of benefits, including creating a steady income for you and your family, cultivating long-term financial security, and living the life of a carefree entrepreneur.
For many people, living in a condo is the perfect balance between a home and an apartment. Condos provide flexible living, a sense of community, maintenance, and more. This makes owning a condo complex a great investment for any real estate entrepreneur.
While owning a condo complex is a great idea, many owners are missing out on money they can make from their rental units. Aside from charging rent and a few fees, there are several actions you can take to make even more money from your condo complex.
If you are a condo unit owner and are wondering how to boost your profits, here are several ways you can do just that.
Treat Your Tenants Well
One of the best ways to boost your income potential for your condos is to treat your tenants well. Happy tenants refer other tenants, write positive reviews online, and make the community a great place to live. Foster a positive community culture and you will automatically attract more tenants.
Know the Value Of Your Condo
If you want to boost your condominium income, make sure you know what your condo is worth. If you are not aware of the value and the average rental costs in your area, you might be charging much less than you should. Take the time to do your research and adjust the rent on your units if needed.
Manage the Property Yourself
A great way to increase your rental income is to manage the units yourself. This is ideal if you have a small complex that does not require a professional property management company. If you are interested in managing your condo efficiently, you can find more information here.
Lease to Long-Term Tenants
While leasing to short-term tenants can be beneficial, it also leads to excessive turnover. When you consistently have a tenant moving out, you need to consistently find a replacement tenant to move in.
This can quickly become a burden, one that is stressful and leads to more vacancies and less income. To avoid this problem, consider requiring a year-long lease to rent your units.
Tenants are the lifeblood of your business, which is why you should avoid vacancies at all costs. Aim for a full complex with a waiting list that extends for several months. Research industry best practices to use effective methods that will help you keep your condo complex fully occupied.
Require Pet Fees
Do you allow pets in your condos? Then you should be charging pet fees.
A pet fee is a great idea. It combats the potential damage a pet may make and can help you boost your income overall. You can supercharge your efforts by also requiring a non-refundable pet deposit.
Collect Application and Processing Fees
If you are managing the units yourself, consider adding application and processing fees. These are standard fees in the industry that account for the time and effort it takes to properly process a tenant’s application. Use smart pricing strategies to determine what your application and processing fees should be.
Offer Furnished Units
One way to boost your rental income is to offer furnished units. This is ideal for those who need an all-in-one solution when looking for a living space. You can start with a few units and add to them if interest increases for furnished units.
As a condominium owner, you know keeping your units filled is your top priority. One of the best ways to keep your complex vacancy-free is to market consistently.
Many condo owners will market until their units are full and then decrease their marketing efforts. This leads to a feast and famine cycle and a stressful experience overall. For this reason, make sure you are marketing your units, even when they are full.
An ideal way to increase your rental income is to offer storage. For an additional fee, you can allow tenants to rent small storage units on your property. This provides a win-win situation, tenants will have more space and you can increase your income while also adding value.
Offer Rental Insurance
Do you offer renter’s insurance? If not, you might be making a huge mistake.
Rental insurance is a great way for tenants to supplement the insurance policy for the complex. By providing renter’s insurance, you can make a deal with a quality company and earn a small commission for every referral you send their way.
One of the best ways to boost your condo complex income is to offer amenities. Upgrades such as vending machines, paid parking, laundry facilities, clubhouses, fitness centers, and more, will add to your property and make it even more attractive. You can charge fees for these amenities or increase your rent and offer an inclusive package.
Increase Your Rent
How often do you increase the rent on your units? While you don’t want to impose unreasonable increases, you should keep your rent up-to-date with the market. If you are not increasing rent yearly, consider implementing this practice right away.
This Is How to Make More Money With Your Condominium Complex
There are many ways you can earn even more money with your condominium complex.
Start by knowing the value of your property and managing it yourself. You should also treat your tenants well and avoid vacancies by marketing consistently. Consider offering amenities and renter’s insurance, and collecting application and processing fees.
Use one or more of these methods and you’ll be well on your way to boosting your condo complex income.
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