This is not the first time we have told you that investing in real estate, that is, buying a property, is one of the surest ways to see your money grow as its value increases over time. Even if the situation is difficult, you can find the ideal time to buy a property at a lower price than it will probably be in a year. In the meantime, renting this property is a good way to financially support your investment. Today, we will look at how to increase the profitability of home rental:

Controlling costs: It is essential that we have a good understanding of the annual costs associated with the possession of these assets and that we closely monitor the payments we receive for these assets.

Regarding tenants : do not cease your relations with them as soon as you rent. Look at their situation, their well-being and even their housing performance. Their satisfaction and economic development are of direct concern to you. Moreover, you must not create a wall between you and them. Have a constant, sincere and direct conversation.

The environment: from time to time, do research on the environment of your property: is the neighbourhood developing, what are the rents in the neighbourhood and what are the rents in the neighbourhood? Remember that prices change and what you have agreed to with your tenants can change over time. Always discuss these changes with a professional.

A step ahead: in short, anticipate the problems that may arise. By following the above points, you will be aware of the problems that may arise and you will be able to see the market opportunities before everyone else.

Vacation Rentals: There is another option that, in a normal situation, without a pandemic, may be more beneficial in terms of getting a higher return on rentals. These are vacation rentals, which especially in Malaga and on the Costa del Sol, have been a perfect and safe option for years to have a constant turnover of short-term customers who pay a higher price than they would pay for a long-term lease. Of course, there are risks as well, because rotation means you don’t have close contact with the people who rent and the owner needs to pay more attention to the condition of the property.

We hope these guidelines will help you continue to see your ROI increase. If you plan to buy a property, contact us and our advisors will recommend the properties for which you will get the best return.

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