Real estate is one of the best long-term investments that could offer a steady passive income over time. Many personalities, especially celebrities, have found the advantages of managing a real estate business. For instance, Joross Gamboa has turned his beachfront property into a vacation rental. Neri Naig has also opened her Baguio house for transients and has a condo unit for rent.
The real estate business is a great way to make passive income, but it doesn’t have to be stagnant. You can still grow it to increase your revenue and maximize the value of your property over time. Here are some tips you can keep in mind.
1. Keep up with the market
It is essential to stay on top of industry news and trends so that you can identify opportunities for growth. Additionally, staying informed about the local market will allow you to make more informed decisions regarding pricing. Nowadays, it’s best for property owners to be more visible online and advertise on social media. You can create a page or website and update it with property-related content. Keep your branding and marketing up to date with the current trends to attract more consumers and make your property seem fresh.
2. Improve its curb appeal
You can maximize your property’s value by improving its “curb appeal” or the general attractiveness of your property. It doesn’t always mean big renovation, but it could be a well-kept garden, a clean driveway, a beautiful front door, outdoor lighting, or even landscaping to make the property look good. According to research, improving your property’s curb appeal increases its value by 7%. As the owner, this could mean more potential customers, higher prices, and thus more income.
But if you have the budget, you can also do renovations to improve the property. Additional features or amenities like a breakfast nook, a terrace with furniture, a breakfast bar, or an additional bedroom and modern bath could significantly increase your property’s value. Experts say installing hardwood floors is one of the best home improvements you can make, with a 147% return on investment (ROI). Adding a new bathroom yields 63% ROI, while adding a bedroom makes 56% ROI.
4. Good customer experience
Finally, having a good customer service approach will help ensure that clients are satisfied with their experience when staying on your property. A solid customer service strategy and training your staff will help ensure you give your customers a good experience. This will lead to customers returning or spreading the word about your business. Either way, it will surely benefit your business.
Investing in real estate can be a great way to generate passive income and build wealth over time. Additionally, improving and innovating your real estate business is essential to keep up with the competition in the industry. Good luck!