Making Serious Money From Your Rental Properties

As a landlord, you are probably already aware of many of the ways in which you can expect to increase your profit from your properties. However, you might not have considered everything you could do on this front, and it is a good idea to take a look at some examples of the kinds of things you can do if you want your portfolio to bring you as much wealth as you like. The truth is that there are no ends to the things you can do to improve the financial strength of your rental properties. In this article, we are going to look at just a few of the best examples.

Increase Tenant Interest

It should go without saying that you need to be able to draw enough attention in order to boost your yield. You need to get interests from many tenants so that you can be perfectly positioned to increase the rent as much as possible. There are many ways to actually go about increasing the tenant interest in your local area. One is to use a letting service who already have a good backlog of interested and respectable tenants. Click here for rental properties which might be able to make use of that kind of service. You can also consider drafting up a perfect ‘target tenant’ – in other words, the ideal candidate for your home. That alone can ensure that you are doing everything in your power to increase the interest you receive from tenants, and so give yourself the ability to keep rents high.

Decrease Vacancy

For any landlord, the worst nightmare situation is when you have a number of subsequent tenants, rather than one who is keen to be there long-term. Increasing the tenant interest will help, as we have discussed above, but it is also a good idea to do what you can to try and find those who are happy to stay for along time. Having this decreased vacancy is one of the simplest and yet most powerful ways of ensuring that you earn as much as possible from your rental properties. It also means that administrative costs are lowered, making it possible to lower the costs for the tenant – and thereby making your property even more desirable in the marketplace. It all helps.

Interest & Fees

Most tenancy contracts will have written unto them that if rent is late there will be interest added, with the possibility of late fees too. You should have these written into your contract – but not just as a deterrent. You should also make sure that you do actually follow through with this, and that you don’t allow your tenants to not pay rent on time. This will help in the long run, as you might be surprised how often your tenants will pay rent late – and in the end these fees and interest will make a huge difference to your final income. It’s worth following through whenever there is this possibility, as it will help you to make serious money.

Source: https://blog.themoneyshed.co.uk/making-serious-money-rental-properties/

Collaborative Post 

HOW TO CUT YOUR MORTGAGE IN HALF

ONE SIMPLE STRATEGY THAT WILL SAVE YOU HUNDREDS OF THOUSANDS

Posted by: Team Tony

Although there is still some debate about whether or not you should pay off your mortgage early, the truth is that the math is almost always in your favor. By paying off your mortgage early you will end up paying as little as half your mortgage payments, which is far less than any tax write-off you would otherwise receive.Legal Disclosure: Tony Robbins is a board member and Chief of Investor Psychology at Creative Planning, Inc., an SEC Registered Investment Advisor (RIA) with wealth managers serving all 50 states. Mr. Robbins receives compensation for serving in this capacity and based on increased business derived by Creative Planning from his services.

“It’s a pity,” mortgage expert Marc Eisenson, author of The Banker’s Secret, told The New York Times. “There are millions of people out there who faithfully make their regular mortgage payments because they don’t understand […] the benefits of pocket-change prepayments.”

WHAT ARE POCKET-CHANGE PREPAYMENTS?

When you sign on the dotted line and take on that 30-year fixed-rate mortgage at 6%, as much as 80% of your mortgage payments will go toward interest. Ouch. In fact, your interest payments will tack on an additional 100% or more to your loan value. To find out how much you’ll pay in interest on your own home, use this calculator.

In order to maximize your payments and end up paying less interest, you simply need to start making payments against your principal along with your normal monthly payment. So the next time you write your monthly mortgage check, write a second check for the “principal only” portion of next month’s payment.

Image © Yulia Grigoryeva/shutterstock

THE NOT-SO-MAGIC MATH, IN ACTION

For example, the average American home is $270,000. (This strategy, however, works whatever the cost of your home). A 30-year loan at 6% requires an initial monthly payment of $1,618.

With this technique you would make your usual monthly payment, and then you would also write a second check for an extra $270, which will cover next month’s principal balance. If the whole $270 – or whatever your number is – seems out of reach right now, pay whatever you can. It will still add up. If you continue to do this every month, you will never have to pay interest on the principal that is pre-paid.

To be clear, you are not paying extra money; you are simply paying a little bit sooner, and saving yourself potentially hundreds of thousands in the process. Imagine being free from mortgage payments in just 15 years instead of 30. Would that make those small sacrifices now worth it?

If you aspire to home ownership – or if where you live, owning a home makes more financial sense than renting – taking this one simple step can eliminate one of the single largest expenses of your life.

Team Tony

Team Tony cultivates, curates and shares Tony Robbins’ stories and core principles, to help others achieve an extraordinary life.

Source: https://www.tonyrobbins.com/wealth-lifestyle/how-to-cut-your-mortgage-in-half/

Beginners' guide to mortgages - MoneyWeek investment tutorials

Isn't it funny that getting a mortgage is something we're all likely to need to do at some point in our lives (often several times over) but we're not taught anything about how in school!

Check out this great beginners guide to mortgages so you can start to fill that knowledge gap!

HOW TO CUT YOUR MORTGAGE IN HALF

ONE SIMPLE STRATEGY THAT WILL SAVE YOU HUNDREDS OF THOUSANDS

Posted by: Team Tony

Legal Disclosure: Tony Robbins is a board member and Chief of Investor Psychology at Creative Planning, Inc., an SEC Registered Investment Advisor (RIA) with wealth managers serving all 50 states. Mr. Robbins receives compensation for serving in this capacity and based on increased business derived by Creative Planning from his services.

“It’s a pity,” mortgage expert Marc Eisenson, author of The Banker’s Secret, told The New York Times. “There are millions of people out there who faithfully make their regular mortgage payments because they don’t understand […] the benefits of pocket-change prepayments.”Although there is still some debate about whether or not you should pay off your mortgage early, the truth is that the math is almost always in your favor. By paying off your mortgage early you will end up paying as little as half your mortgage payments, which is far less than any tax write-off you would otherwise receive.

WHAT ARE POCKET-CHANGE PREPAYMENTS?

When you sign on the dotted line and take on that 30-year fixed-rate mortgage at 6%, as much as 80% of your mortgage payments will go toward interest. Ouch. In fact, your interest payments will tack on an additional 100% or more to your loan value. To find out how much you’ll pay in interest on your own home, use this calculator.

In order to maximize your payments and end up paying less interest, you simply need to start making payments against your principal along with your normal monthly payment. So the next time you write your monthly mortgage check, write a second check for the “principal only” portion of next month’s payment.

Image © Yulia Grigoryeva/shutterstock

THE NOT-SO-MAGIC MATH, IN ACTION

For example, the average American home is $270,000. (This strategy, however, works whatever the cost of your home). A 30-year loan at 6% requires an initial monthly payment of $1,618.

With this technique you would make your usual monthly payment, and then you would also write a second check for an extra $270, which will cover next month’s principal balance. If the whole $270 – or whatever your number is – seems out of reach right now, pay whatever you can. It will still add up. If you continue to do this every month, you will never have to pay interest on the principal that is pre-paid.

To be clear, you are not paying extra money; you are simply paying a little bit sooner, and saving yourself potentially hundreds of thousands in the process. Imagine being free from mortgage payments in just 15 years instead of 30. Would that make those small sacrifices now worth it?

If you aspire to home ownership – or if where you live, owning a home makes more financial sense than renting – taking this one simple step can eliminate one of the single largest expenses of your life.

Header image © V. J. Matthew/shutterstock

Team Tony

Team Tony cultivates, curates and shares Tony Robbins’ stories and core principles, to help others achieve an extraordinary life.

Source: https://www.tonyrobbins.com/wealth-lifestyle/how-to-cut-your-mortgage-in-half/