Making money with rental properties is more than just finding the right investment property and buying it. Many details can be easily overlooked if one is unsure what they’re doing and if the business itself doesn’t have a structure to follow.
It’s like fishing: no matter how much you’re enjoying your time on the river, chances are you’ll never catch anything if you don’t have any bait, hook, or rod.
Here’s some advice on what to do to make your rental business profitable and enjoyable with the least effort possible:
- Get Property Management Services
When you buy a rental property, it’s your choice to manage the business on your own or hire someone else to do it for you. Although there are many benefits to working the property yourself, chances are you’ll eventually need professional help when the demand for it becomes more significant.
If you’re in Canada, this is where contracting property managers Toronto can help. Getting their services means they’ll be responsible for finding tenants of your rental property, taking care of repairs and maintenance, along with accounting and taxes. Their fees vary, but a pivotal point to check is their company’s policy regarding the vacancy period. It’s because some companies may charge you even if your home isn’t rented out within time after the previous tenant moved out.
There are many ways to know which property management company is right for you. One good way to find them is through friends or acquaintances that work with the one they’re satisfied with. You may also approach your local real estate investment association to help expand your list of recommendations. Another option is checking the companies’ market presence online and seeing what their clients say about them in general.
Since there are many types of properties out there, they must be managed differently. This isn’t where cutting corners would do. Remember that this is a serious business transaction, and it could cost you if mishandled. Thus, at the end of the day, it’s best to have someone else handle your business for you, so you can focus on finding more properties where you can make more profits from.
- Choose A CRM
A CRM, or a Customer Relationship Management system, is a database where you can store all your contacts. However, this is one of the most common CRM mistakes businesses make, as it can also be used to better manage time when reaching out to customers.
These used to be only accessible through email services, but nowadays, there are cloud-based solutions that can keep all your client information in one place, accessible from anywhere with an Internet connection. The best thing about this is information is automatically logged in the system every time you receive a lead, message, or phone call.
While there are many options available, it’s good to find one compatible with your existing devices. You may also choose one that has an invoicing system to generate portable document formats for your clients. In this way, you can keep track of their payments and even create corresponding professional-looking reports.
- Be Social
There are many ways you can expand your market reach and make yourself more visible to potential clients. One is by creating a blog to showcase the most relevant information for your business, along with tips that would be interesting for both investors and tenants.
You can also use social networking sites to your advantage, but you need to know what content will work best on which platform. It’s because some sites are great places for visual storytelling. In contrast, others may be better when networking and sharing relevant news from your industry. There are other sites too that are great for interacting with clients and other professionals.
- Create A Referral Program
One great idea to ensure your rental property business is on autopilot is to have a referral program that works in your favor. If there’s a good chance that the person will actually rent with you, a referral program can also be a great way to get new customers without spending too much on ads or finding leads through other means.
This also helps build long-term relations with your current customers and gives them a little more incentive to keep using your services. The better the service you offer and the happier your clients are, the greater chance they’ll be willing to spread the word for you.
Today’s world is a fast-paced one. As your business grows, so does the number of things you have to be responsible for. This is why it’s essential to utilize every available tool that can help streamline your operations and reduce the possibility of something going wrong.
With the tips above, you can have your rental property business on autopilot in no time. All you may need to do is follow them diligently and reap the benefits of being organized.