Owning a rental property is profitable and can offer high returns. It can be a great way to fund a vacation property that you use occasionally or even to earn extra income. Nonetheless, it can also be complex. Here are five tips that will help you get the most out of your investment property.
1) Book Return Renters
One of the best ways to ensure a continual revenue stream is to keep it regularly booked. Satisfied renters like to take the guess work out of planning and will return to your property year after year. Going above and beyond to help you clients have a comfortable, fun and worry-free stay will encourage your guests to book their next trip as soon as possible. When your property is in high demand it sends a signal to other potential renters that your property is high quality and trustworthy.
Here at Breckenridge Resort Managers, client satisfaction and return customers are at the very core of how we work.
2) Know Your Tax Deductions
Did you know you can receive tax deductions on rental properties for renovations or repairs? However, claiming a vacation home as a rental property has some very specific rules attached. For example, you cannot use the home for more than 14 days of personal use or you must figure taxes using percentages of your time staying in the home. The more you know about the tax laws, the more potential you have to keep your profits. If you are not familiar with tax code, it will be worth your money to hire a professional to make sure you are getting the most out of your property.
3) Know Your Renters
Some vacationers want an affordable place to sleep but plan to spend the majority of their time on other adventures. Other vacationers want an attractive and luxurious place to stay with all of the bells and whistles. It’s important to know which clientele best suits your property.
If most of your renters are only looking at the price point, don’t spend extra money on fancy upgrades or expensive amenities. Keep the rental price low to attract a steady flow of adventurers. If your renters tend to be the latter, you will want to make sure your property is up to par. Comfortable furniture, a well stocked kitchen, a game room, a fireplace or fire pit, and a hot tub are all amenities that will that many vacationers will splurge for and will make your property stand out.
4) Excellent Customer Service
Renters want to feel like they are a priority. Consistent communication, a quick response to complaints, and a property that is easy to use will help your renters feel more at home. It’s crucial that quick and professional communication be the norm with clients, no matter the request. (Did we mention we have a 24 hour answering service for guests?)
5) Property Management Service
RealEstate.com reports that a property management service will help improve your returns, save you time and headaches, as well as increasing your profits.
It can be hard to offer excellent customer service, make repairs and ensure client satisfaction and loyalty when you live far away from your rental property, or even when you have a full time job that demands your attention. While a property management service costs a percentage of your rental value, the benefits outweigh the costs. A property management service like Breckenridge Resort Managers is crucial for getting the most profit from your investment property. We will ensure that your clients stay happy, are cared for and look forward to returning.
If you are considering a rental property or are already invested in one, seek out financial and property management professionals to help you determine how to get the most out of your investment property.