For those new to the Boston condo rental business may think renting out properties will be an easy source of income. However, you may have difficulty making money on your investment if you manage the property incorrectly. If you own a Boston Beacon Hill condo or another neighborhood in downtown, follow these five tips to make the most money possible when renting out a condo unit.
1. Know the Value of Your Condo
One of the main reasons condo owners lose money is because they are advertising their rents at either too low or too high of a price. Renting your Boston high rise condo for much less than other condos in the area means you are missing the chance to make money. However, if the high rise condo you own is in the downtown area and you rent it for far higher than other condos in the same area, you may end up with a long vacancy between tenants that translates to lost money. Make sure you do your research and rent your condos for an amount comparable to other nearby condos.
2. Offer Extra Services for Additional Fees
Most Boston Beacon Hill condo tenants want a condo because it is more convenient, so many will be willing to pay extra for added conveniences. Things like coin-operated laundry machines or cleaning services can be an excellent way to supplement your rental income. This is particularly lucrative if you own multiple condos because you can get bulk deals with contractors and then charge the tenant more.
3. Be Cautious of Who You Rent To
A lot of property owners make the mistake of renting out their condo to the first person who expresses interest. However, it is important to do a thorough check of your potential tenant’s renting history before you sign a lease. If you get stuck with a nightmare tenant, you may end up losing money because you are stuck paying condo fines for poor behavior, repairing damaged property, or even fighting court battles to evict tenants.
4. Encourage Tenants to Stay
Having to look for a new tenant can end up eating into your condo renting profit. During vacant months, you do not make any rent. You also end up having to pay to advertise the condo in downtown Boston, repair any damage, and stage the condo to make it appeal to new renters. To minimize turnover, make sure you promptly reply to the concerns your tenants have and repair any issues quickly. Consider offering other incentives like free repainting or added amenities to keep reliable tenants.
5. Be Firm About Late Fees
Everyone wants to be liked, but you need to keep in mind you are a landlord, not a friend. Stress the importance of tenants paying on time, and be firm about collecting previously agreed upon late fees if the tenants are late. Otherwise, you may be losing money just because you want to seem nice.
If you’re thinking about purchasing one or more Boston high rise condos and becoming a landlord, make sure you have a trusted agent to help you find the best units for sale in the downtown area. Give Ford Realty a call today at 617-721-9504, and we can guide you through the process.