Rental properties are a wise investment that can pay off in the long-term. But the key question for a lot of people before investing is, “how do I make money from a rental property?”.
This guide gives you a few pointers on how you can make money with your Calgary rentals.
The Best Ways to Make Money With Your Calgary Rental
Finding Properties in the Right Areas
There are a lot of condos and homes for rent in Calgary. But finding one that is going to be worth the investment relies on a few factors. Most importantly, the location.
You want a property that will be close to amenities, transportation and key locations, such as schools and hospitals. Add all these together, and you narrow down a selection of ideal properties as a rental investment.
And it’s through these areas and properties that you can make money through rental income and the curbside value. The better the location and property, the more you can charge for rent.
If you can’t find something within your budget, you can always speak to a real estate agent or a Calgary property management company. They can aid you with your search for a property within your budget and desired area.
Future Development Around The Area
Having a good idea of what is going to be built around your property is crucial. You can check out the City of Calgary Municipal Development Plan to determine what construction is occurring around your home.
How does this help?
If there is a lot of construction and developments going on, it is probably a good growth area. This means that you can have access to more amenities, services or highway accesses, which will enhance the value of your rental property (making it more profitable when selling later on) and can encourage you to increase your rental rates.
Being near growth areas means the suburb is a hot ticket item. You got the opportunity to make the most of it with your rental property.
Compare Rates To Your Area
You might not realize that you’re not charging enough rent for your property until you do the research. By researching the surrounding area to see what others are charging for rental rates can give you an insight into if your rates are unvalued.
You might be offering way less for a quality home compared to another down the road that is more expensive and doesn’t provide the luxury your home does.
Only by conducting research into other rental rates and comparing properties, can you charge the right rates for your Calgary rental.
Investing in Improvements
There is no question that the more you invest in your Calgary rental, the more you can charge renters and sell it for more in the future. Investing in improvements, such as renovations, can go a long way to enhancing the value and curb appeal of your property. Crucially, it also allows you to charge for more rent as you provide a better, more luxurious home.
But which renovations are best for your property?
If you own a condo, you will have to follow the condo board’s rules and regulations for any interior renovations. Speak to them before managing it yourself.
For homes, you can do as you wish. HGTV suggests that the following renovations can be well worth your investment:
- Minor Bathroom Remodel – Average return at resale: 102 percent
- Minor Kitchen Remodel – Average return at resale: 98.5 percent
- Major Bathroom Remodel – Average return at resale: 93.2 percent
- Exterior Improvements (Vinyl Siding, Paint, Updated Front Entry) – Average return at resale: 95.5 percent
Whatever you decide for your rental property, remember that renovations can make a significant impact and help you make money both through rental income and selling your home later on.
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 inquiries, please contact us:
Phone: (403) 219-3000
Email: [email protected]