Real estate: the niche that has long been touted as one of the best investment avenues ever to exist. As real estate owners, you know this first-hand, but you also know that raking in consistent profits is not always a guarantee. Sometimes, market volatility is to blame. Other times, it’s a combination of factors that real estate owners might not be able to divine. But it’s possible to get better returns without much effort or overhead.
Real estate owners, say hello to maximizing existing real estate assets. This underutilized yet highly valuable strategy not only alleviates the pains of investing in new property but can also generate consistent income even in the worst of times.
Tips and Strategies for Maximizing Your Real Estate Property
Being a property owner is extremely rewarding, but often only if your space is occupied all day long, 365 days a year. If not, your real estate journey can quickly become a nightmare, punctuated by sleepless nights and countless futile attempts to find prospective renters, but your woes end here. Rest assured—this article will assist real estate owners by revealing actionable tips and strategies for turning your current space into a crowd-pulling, money-making machine.
1. Perform regular maintenance and repairs
One of the upsides of renting (from the renter’s perspective) is that someone else has to handle the maintenance and repairs. So if you don’t take care of your property, your tenants won’t either.
Fix problems as soon as they appear, whether they’re with electricity, HVAC, plumbing, or just superficial damage.
Real estate owners may not be able to directly translate your higher standards into higher revenue, but you will prevent larger problems in the future by taking care of them when they’re small. You’ll also make your current tenants happier, which is a huge plus from a reputation perspective.
Here are a few tasks to take on:
- Fix leaky faucets.
- Invest in better lighting.
- Repaint stained or peeling walls.
- Replace malfunctioning or hard-to-use doors.
- Buy new window coverings to replace damaged ones.
2. Renovate, renovate, renovate
Even the sturdiest properties eventually bow down to father time. The once stunning spaces you built years ago have certainly lost some of their allure, and from a revenue perspective, that’s a prime opportunity waiting to be explored.
Think about it—what would a first-time renter want to see when they look at your property? Certainly not an unsightly space with peeled-out paint or cluttered floors! A properly renovated space wows them from the get-go, erases any prior doubts they may have had, and subtly nudges them toward sealing a deal with you.
It goes without saying that high-quality clients aren’t easily impressed by subpar renovations. So if you want to attract valuable clients that will happily rent your property time and again (think parking) or stay long-term (think college storage), up your game. Don’t be stingy.
Does that mean you spend the big bucks renovating your entire property from corner to corner? Not really. Be wise and strategic about it. Only focus on the must-do improvements that a potential tenant can’t help but notice at first glance.
If you don’t take care of at least these six jobs, you’ll be throwing money down the drain:
- Do the big property cleanup—you want your property to sparkle.
- Touch up any chipped paintwork.
- Remove and store away any clutter.
- Fix any obvious detrimental defects.
- Tidy the façade or front garden.
- Ensure you have the best possible street appeal: sweep paths, ensure your gate is working, make sure your street number is visible, etc.
Remember, you are not renovating your property so you can enjoy the end result. You are purely doing it to attract more tenants and maximize value. That means you shouldn’t renovate with your personal taste in mind but rather what the market expects. Think very carefully.
3. Make smart property management your ally
In a world of ever-increasing vacancies and dwindling rental income, who wants to take a gamble with how they oversee their property? But, even the most ardent real estate owners sometimes fumble at this critical duty. Smart property management tips provide a solution. Here are a few ideas for managing your property for maximum profitability.
- Set fair prices: This is one of the most important things you can do to keep guests coming and reinforce your bottom line. Research the market and see what other real estate owners are charging. Let your final price reflect this.
- Prioritize tenant needs: It’s simple—if your tenants’ needs aren’t met, you’ll quickly face complaints, poor reviews, vacancies, or even legal repercussions. Inevitably, these eat into your budget a great deal. Hire expert maintenance personnel to fix problems promptly. Additionally, ensure you have someone at any hour to solve payment issues or rent questions should they arise.
- Use property management software: Almost every functionality in this tool is an income bringer. For example, financial reporting capabilities can help you identify trends, mitigate risks, and discover ways to increase revenue while lowering expenses. Do your due diligence beforehand to ensure the solution you pick checks all your boxes (think payments, document storage and signing, taxes, etc.).
- Bring in an expert: Depending on the nature of your rental space, you might need to add a qualified property manager to your ranks. This personnel will help minimize your maintenance costs by hunting down discounts. They’ll also help keep your income higher by setting rent prices accurately.
4. Monetize unused spaces with platforms like Neighbor.com
See that huge garage in your backyard that you hardly ever utilize or that parking space you ceased using after selling your car? Well, those are literal goldmines.
You can list them on platforms like Neighbor.com to make money from home by storing vehicles and belongings. Then, if many people in your neighborhood search for “monthly parking near me,” the potential to make a real profit increases several-fold. This way, you can make enough money to facilitate future renovations or regular repairs, ensuring your space will always be in high demand.
Don’t feel like channeling that income back into the business? Allocate it towards more enjoyable activities; go out to dinner more, travel more, and generally live a better quality of life. We only live once, after all.
5. Stay updated with market trends
In the real estate realm, trends shift at an astonishing pace. One moment, energy efficiency is a top priority for prospective renters; the next moment, they’re revving about proptech. With a proper understanding of real estate market trends, you can make informed decisions to increase property value. Rarely do renters flock to out-of-date spaces with unpractical or unfashionable amenities, especially not Gen Z tenants.
Chances are you’ll find a comprehensive list of all the current trends with one quick Google search. Not all websites you come across are trustworthy, though. Some will post stale information and only change the date to entice unsuspecting readers. Here are reputable sites you can visit to see what’s trending in real estate:
- Zillow
- Realtor.com
- Roofstock
- Auction.com
- Apartments.com
- Rentometer
- Census Reporter
- Redfin
- National Association of Realtors (NAR)
- SmartMove
Frequently Asked Questions about Maximizing Real Estate Space (FAQs)
Check out the answers to your questions so that you can begin your property maximization journey with less fretting and more confidence.
1. How can I increase the value of my property?
There are a variety of suggestions about how to raise the value of an existing real estate asset, be it a commercial parking space, a controlled storage unit, or an RV storage area. Ultimately, your decision will depend on your circumstances.
A decision to introduce urgent repairs might work perfectly if a renter is already waiting to move in. On the other hand, a renovation is more suited to instances when you want to give your space a complete facelift and have money and time to spare.
Meanwhile, if you’re eyeing local renters looking for “long-term parking near me,” a good idea would be to utilize platforms like Neighbor. Listing your property on these avenues is not only convenient and easy but also a creative way to earn a sustainable income.
Strategic property management and keeping an eye on real estate trends are also excellent ways to achieve your real estate income enhancement goals. You only need to put your money (and time) where your mouth is.
2. How can unused spaces be monetized?
Beyond traditional approaches such as bringing on a housemate or pet boarding, several alternative solutions are gaining traction. Companies like Neighbor enable you to rent out your space, no matter the size, for parking, vehicle storage, self-storage, and more. Additionally, commercial establishments like malls and churches are leasing unused lots for parking, opening up an extra income stream where none previously existed.
3. How does Neighbor.com work for property owners?
Real estate owners, here’s how the magic happens on Neighbor in three simple steps:
- List your spaces: Say a thing or two about the spaces and how much you’d like to earn.
- Respond to renters: Review renter requests (including what they want to store and when) and approve them.
- Schedule a move-in: Schedule a move-in time with your new renter. That’s pretty much it.
Grow Your Bottom Line, One Unused Space at a Time
Now that you know the essential real estate strategies for maximizing utility and minimizing vacancies, you can start identifying options for the use of unused spaces within your home. Remember, even the smallest, most unconventional of spots can bring you good money, so don’t limit yourself to only a handful of possibilities. With companies like Neighbor.com, you’re no longer just monetizing an unused property—you’re helping neighbors in need.
