When you’re renting out a luxury property, your rental income is going to be higher, but so are your tenant’s expectations. Luxury rental properties require a different management strategy, and you’ll want to set clear guidelines at the beginning of a lease so you’re able to keep your tenants happy and maximize the rental value of property you own.
How to Maximize Rental Income: Maintain and Upgrade
Luxury properties need to really stand out. You don’t want to allow any deferred maintenance. Not only will your tenants complain; you’ll also put the condition and value of your asset at risk. Take care of maintenance issues promptly. Make upgrades and updates during tenant turnovers so the home will continue to feel modern and special to new prospective tenants. The best upgrades for rental property are new kitchen appliances, fresh paint, and updated flooring. Include a landscaping service. Tenants will appreciate this, and you can include the cost of the gardener in your monthly rent.
How to Make Money from Property: Correct Pricing
You need to price your luxury property correctly. If you market the home at a rate that’s too high, good tenants will look elsewhere. You’ll also run the risk of chasing out the tenants who are currently in place. You may attract a lower quality of tenant when your rent is too high. They are probably being rejected elsewhere, so they’ll be willing to pay more for your property. Before you raise your rent, conduct a market analysis so you know what the competition is charging. If the market is doing poorly, you don’t want to increase the rent. That will give your tenants a reason to leave.
Retaining Great Tenants
Keep your tenants happy so they stay in your property and renew their lease. Respond quickly to questions and concerns. Make the repairs they request. Provide easy ways for them to pay rent online, and answer the phone when they call. You need to be available and accessible. Manage expectations early. You don’t want to work with tenants who will expect you to change light bulbs and air filters. Let them know what’s required to live in the property.