Trying to increase your rent and make a profit from it is harder than most people think. Simply raising it will deter tenants and make it harder for you to find someone you like – losing you more money in the process. As a landlord, you have to know how to maximize your rental profits in today’s challenging market.
This blog post is here to help. We have five ways that you can raise the rent of your property, and maximize your profits.
How To Make The Most Out Of Your Rent
Set A Competitive Price
Establishing a fair price for your rental property is the protection you need to make sure that you don’t lose any money from your investment, but there is a delicate balance that you need to find. Raising the price too high will discourage tenants, while putting it too low means losing money. To establish a competitive price, do your research on:
- The listings and prices in your neighborhood
- The conditions and amenities of similar rentals
- The pricing strategy based on the duration of your lease
- The supply and demand of the Calgary real estate market
The more research you do, the more you can adjust your rent to get the money you deserve.
Invest In Your Rental Property
If you invest money into your rental property, you can expect to get that money back in the rent that comes in. Over time, you’ll be making more profits from it, especially if you raise your rate. Having a newly renovated property (or even specific areas of your home), will be attractive to high-earning renters, who will be willing to pay the rent if they know the money is worth it – meaning you’ll be making more profits over the long-term.
Get Help From A Rental Property Management Company In Calgary
While it might seem counterproductive to spend money on Calgary property management, the benefits that you’ll gain are evident.
By conducting their research, they’ll be able to determine how much you can increase your rental price, and what you can do to increase it. They have experience in the field, and can use it to make sure you get your fair price for your rent.
Take Advantage of All Tax Breaks
The Canadian government is very supportive of landlords and provides them with opportunities to claim back money on their investments. You can take advantage of tax breaks and offsets by writing down all the capital expenses spent on improving your property and obtaining higher rent rates. You can claim anything from insurance to advertising and rental property management fees. You’ll be able to claim any investment back through your taxes, guaranteeing more money in your pocket than out of it.
Target Your Ideal Tenant
Don’t just settle for any tenant – choose the ideal candidate. By getting the perfect tenant, you can set a higher rent rate, expect them to pay it, and expect them to stay for the long-term – saving you money in tenant turnovers.
Take the time to search for your ideal tenant. Find out what they want in terms of home style and facilities, their lifestyle (where your property is located will impact this) and what they plan to do with their future. If you need advice, you can always speak to your Calgary property management company.
At Unison Realty Group Ltd. we will find the perfect rental for you in a location that fits your needs. We’ll handle what you don’t want, and you’ll enjoy the benefits.
For any questions or enquiries contact us:
Phone: (403) 219-3000
Email: [email protected]