Purchasing a rental property is a scary thought for many. The housing market crash in 2006 makes people wonder if it could happen again. As no investment idea is solid, here are three interesting ideas that can prove to keep the cash flowing in from your rental property.
Stop Renting Via Traditional 12-Month Leases
One problem with rentals is that renters are restricted to full year term leases unless the property owner has other plans for the unit sooner. Many renters these days are unsure of their jobs or may even know they just need 6-9 months to get things right for their family to move into a home.
Large building and condominium associations take advantage daily of renters looking for short-term leasing options. They offer short-term leasing at higher prices. Since there is less of a chance of someone needing to move sooner, a renter would be willing to pay more and avoid a larger buyout fee. Start thinking in these terms instead of a strict 1-year lease option.
Place Units for Rent Strictly for Vacationers
Vacation rentals are increasingly popular now. Families are wanting to get away for weekends and weeks at a time. Vacation rentals are more homely while offering all the benefits of a new city to visit. Many vacationers are turning to vacation rental sites because:
- they are great for last minute travel deals.
- they offer a sense of privacy (no adjoining rooms).
- they have a full kitchen and allow families to dine in, saving money.
Ask Crowdsourcing Investors for Assistance
Crowdsourcing sites have been looked upon for emergencies. You go online and post your situation and a group of people pitch in for your cause.
However, think about crowdsourcing as an excellent investment tool. For instance, if you have the means to purchase a home, but not the materials and labor needed to fix it up to flip, crowdsourcing investors are a great option. Besides just purchasing a home, you could also seek out funding from Crowdsourcing investors to:
- build an add-on rental property over your garage.
- expand your basement to turn it into a private rental unit.
- upgrade and remodel a rental unit.
These crowdsourcing sites allow you to work on and keep your properties. The investors in turn will get their money back with interest. However, you still have full ownership of the property. Whereas other private investors may want to continue to have their stake in the property until it's sold.
The above three tips are an excellent way for you to make money investing in rental property. So now, purchasing it should not be as scary. Again, as there are no sure bets, these options will keep you further away from an empty property for too long.
For more tips on buying and renting out rental properties, talk with real estate agencies in your area, such as Coldwell Banker Pro West.