3 Steps to Make Money From Renting Out A Property in 2024

It goes without saying that investing your money in real estate is a great idea because you can get a great deal of money if you decide, at some point, to sell it, or rent it. Generally speaking, a lot of people nowadays, rent their homes (if they’re not ready to sell them) because it is an amazing source of income.

If you are one of them, then you definitely made the right decision, however, keep in mind that before you take any further steps when it comes to this, you first must carefully plan how you’re going to execute this so that you can actually make a real profit from this endeavor. 

If you’re unsure what these steps are, don’t worry, because, with the help of these tips that we put together today, you’re going to increase your rental income in a flash. So let’s check them out together!

1. Determine A Competitive Rent Price Along With Rental Fees

There are several factors that need to be taken into consideration as far as this is concerned. Real estate gurus at BiggerPockets would like to remind you to consider the location of your property, seasonality, rental comps, its condition, and the amenities that it provides. If you’re interested in finding rental comps, you can start by looking for rental listings on the web.

On the other hand, you can utilize any reliable rent analysis report that’s going to give you insight concerning the rental demand, rental comps for similar properties, and so much more. Other things that could help you earn even more money include parking fees, security deposit, pet fees, and move-in fees. 

How can you determine the price of these fees? Namely, you should conduct thorough research to see how much other landlords charge for these fees. Based on their prices, you can easily set yours.

2. Renting Additional Storage Space Is Always A Good Idea

Most homeowners will tell you that there’s no such thing as redundant storage space. That’s all because, most people have a tendency to keep almost every single item they have in their home, whether they really need it or not. 

Over time, the stuff turns into a huge pile and you suddenly realize you do not know what to do with all of it. That’s oftentimes the case with things like clothes, decorations, different types of equipment, etc.

All of these items require additional storage space. This just goes to show that a vast majority of people are longing for it. Therefore, it’s a perfect time to make use of this situation by offering these people your storage space.

It can literally be anything, starting from your basement, attic, sheds, and many other areas. As previously concluded, this is an amazing way to earn extra cash, hence once you decide to rent your rental unit, do not forget to include this extra space too and simultaneously, increase the monthly rate for it. 

Of course, if you want to rent only your storage space (and not the entire property), you can do so as well.

3. Do You Need A Property Manager?

It doesn’t matter whether you live too far away from your rental property, or you simply are not in the mood to collect the rent every single month, the point is that in both instances, having a property manager is a great decision.

That’s because, by doing so, you will shift this burden on this person, so that you are not obligated to deal with both your property and tenant. What are the main duties of property managers?

For starters, they are here to advertise your property, quickly find new tenants, handle everything that’s related to paperwork and lease legalities, take the money for your rent, and supervise required maintenance. 

Although we assume that you are probably familiar with this fact, it still doesn’t hurt to remind you that they charge a certain fee for these services, meaning that they will take a specific percentage (usually pretty small) of the monthly rental rate.

Even though there are people who are having second thoughts about this because they think that it’s nothing but an additional expense, a lot of property owners will tell you that it’s actually an amazing decision, due to the fact that they do not need to deal with all these above-mentioned tasks which gives them enough time to focus on other relevant things that need to be done.

In this day and age, renting out a property has become very lucrative and is generally a fantastic source of passive income. Consequently, if you want to earn some extra bucks, then make sure to follow all these tips. It’s important to thoroughly screen potential tenants to avoid any issues down the road, such as late payments or damages to the property. Additionally, be aware that issues like eviction can have long-lasting consequences on a tenant’s record, and eviction impact on home buying can be significant, potentially affecting their ability to secure a mortgage in the future. Taking the time to manage your rental property carefully will help ensure a positive and profitable experience.