6 Revenue Generating Tips for San Antonio Landlords
As a property investor in Texas, part of generating revenue requires hanging onto your profits and making sound financial decisions. Here’s what you can do to generate – and keep – your profits from your San Antonio rental properties.
- Work with a property manager
When you’re busy with daily landlord tasks, it’s easy to get caught up in the minutia and lose sight of your investment goals. Working with a property manager will make your life much easier and more profitable.
You can be a landlord or an investor, but it’s hard to be both at the same time. Being a landlord working by yourself is daunting. Whether you have one property or ten, your duties are never-ending. You’re responsible for everything, starting with marketing vacancies and screening tenants to making repairs and processing evictions.
With a property manager taking care of your tenants and properties, you’ll have more time to tend to your investments, pursue new opportunities, and strategize for the future.
- Take advantage of specialized marketing services
When you’re a landlord, rent is your source of investment income. Your goal is to find high-quality long-term tenants who pay rent on time and in full.
When you have good tenants, you’ll spend less money on repairs, cleaning, and court fees. Good tenants won’t intentionally damage the property while they live in the unit or when they move out. You also don’t have to worry about evicting a good tenant for not paying rent.
To get good tenants, you need specialized marketing services designed for real estate investors. Specialized marketing services will target ideal tenants in San Antonio to bring you high-quality leads.
Specialized marketing works best when you also have a property manager who can sift through applications to identify the most qualified applicants. However, you can also do your own marketing if you feel comfortable.
- Keep meticulous financial records
Your profitability depends on your ability to keep good financial records. To stay profitable and increase your income over time, you need to know where every penny goes.
Are you wasting money paying for services you don’t need? Are you paying too much for certain services? Do you know what taxes you owe at the end of the year? Do you know when all of your bills are due?
Keep meticulous financial records to track your expenses, income, tax liability, and to stay on top of when your bills are due.
Not knowing how much money you owe the IRS at the end of the year can cause you to make poor financial decisions. Those poor decisions can tank your profitability. Also, if you don’t know how much money you’re spending vs. how much you’re pulling in, you won’t know when you can expect your property to become pure profit.
- Back out of deals that don’t feel right
Don’t hang onto a deal that doesn’t feel right. Intuition isn’t always accurate, but it can be most of the time. If you want to be profitable, don’t get hooked into deals that feel wrong. If you sign papers for a bad deal, you might be able to wiggle out of it, but it will cost you a chunk of cash.
- Don’t be afraid to sell a property that’s losing money
If you own a rental property that loses money every month, sell. Don’t hang onto a property that loses money on a regular basis. If you’re hanging on to property through the pandemic and you’ve already lost a lot of money, cut your losses quickly.
No property is worth keeping if you’re losing money. If you hang onto a money pit, all of your profits will end up in a black hole.
- Be frugal with renovations
Renovations can increase the value of your property. However, not all renovations will add value. Some renovations only add aesthetic appeal that doesn’t translate to monetary value.
If you’re going to perform renovations, make sure it’s worth the investment. For instance, don’t remodel the kitchen cabinets for an existing tenant unless the kitchen cabinets are in shambles. Wait until your tenant moves out, assess the situation, and then get new cabinets if you feel it’s necessary to attract a good tenant.
Owning real estate in San Antonio is a profitable investment
Owning real estate is a profitable investment when you manage your finances correctly. To maximize your profits, limit unnecessary spending and learn how to attract good tenants who pay rent on time.
Good tenants will take care of your property, which will reduce your overall expenses.
