Despite challenging market conditions and persistent recession fears, rental properties still present promising investment opportunities for willing buyers.
Over the past decade, higher-income households accounted for an increasing proportion of renters, leading to a corresponding increase in rent prices and income for landlords.
However, these trends do not guarantee that all assets in a rental property portfolio will make money.
Numerous factors determine if a property will be profitable — and there are also a few things landlords can do to ensure consistent profitability across rental properties.
Being a successful landlord is easy when you follow time-tested advice.
How to Improve Rental Property Profitability
Know the local laws
It seems unnecessary to explain that investors need to conduct research before investing, especially for high-value assets such as real estate, but landlords can sometimes be swayed by factors that might not be in their best interest.
Some landlords wish to be more hands-on with property management or own rental property close to their homes.
This can lead them to look at purchasing a rental property in the same light as purchasing a property for themselves to live in — meaning they may overlook essential regulations in the area, such as eviction rules, rent control legislation, and more.
When buying a rental property, landlords must view their purchase as an investment, not a home purchase.
It is one of the essential factors for owning a profitable rental property.
Streamline Processes Across Properties
Each rental property is unique — its location, neighborhood, maintenance needs, and more will differ from others in the same portfolio.
Landlords who treat all their rental properties as identical assets can fail to use state-specific benefits or prepare for natural disasters in areas more prone to them.
However, standard processes — such as rent collection, tenant applications and screening, and income and…
