One of the safest and most reliable investments is real estate. If you have an inherited property, acquired as a second home or as a vacation home, you can make it profitable. If you are already renting that property, do you know how you can increase the profitability of your rentals? Learn how to use ROI (return on investment) to your advantage with the following tips.

What is ROI?

First of all, let’s talk about ROI or return on investment. This refers to the return or profit you can get from an investment. This also applies to real estate, but it can vary if you want to continue renting the property or if you prefer to put it up for sale. In the first case, this profit is usually monthly and to calculate it you must establish the amount that you have established in terms of rent.

To this you must subtract the costs and then divide that figure by the amount invested at the beginning and, finally, multiply it by 100. In this way, you will estimate the profitability you get from your property.

Increase the profitability and potential of your rental!

Now that you understand the concept of ROI, it is time to talk about the tips to make your property more profitable:

• Location. This is basic, since certain areas (for being touristic, urbanized, located near schools, hospitals, etc.), are more profitable than others. But it is also important to check if it is a commercial area, if it is a safe place, the traffic of people or vehicles…

• Distribution. Some people look for a house with at least two bedrooms, while others are satisfied with just one, even shared. This will depend on your type of tenant, as we will see below. Also take into account whether or not the apartment will have furniture, appliances, etc.

• Services. In these times, urbanized places are always more attractive for a permanent or temporary tenant. We are not only talking about services such as water or electricity, but also WiFi. Also consider not making extra charges. That is to say, once you make a good analysis of the expenses of the place, include additional services in the rent and do not charge them separately.

• Connectivity. In addition to the services that a tenant may request and that we mentioned above, it is interesting that it is a place with good connections and communications. Few people will want to rent a property in the middle of nowhere or without access to communication routes!

• Maintenance and appearance. A well-kept property will always be more attractive than one that has not even a coat of paint or shows deterioration. Another point to include here is that if you rent with furniture, it should be ad hoc to the style of the house and in good taste. Every detail is important!

• Type of rent. This is a very important point, because many things depend on it, including the profitability of your rent. There are two types: long-term rent, which allows you a fixed monthly income and is often aimed at families. And, on the other hand, there is the short term or seasonal rental, aimed at executives, students, young professionals, vacation periods, etc.

• Go to a rental professional. This is indispensable to crown a good management of your rental and to get the best out of it. The above may seem simple, but sometimes things do not work out so well due to inexperience. For example, in the drafting of a rental contract. It is best to leave it in the hands of professionals. They will take care of the legal and administrative formalities.

Lodgerin: we increase the profitability of your rentals

Our company is young and specializes in offering the best spaces to target clients. But at the same time, we also help you to earn more with the rental of your property. Just register with us and upload your property to our website. We will manage the information of potential tenants and you decide!

We guarantee you the best service and you will be able to manage all your property information from one place. Of course, we help you with all the paperwork and we even give you the option of taking care of all the management. Visit our website and fill in the form to receive more information.