Becoming a property investor requires one to do their due diligence and acquire enough knowledge about the process to make it as seamless as possible. There are many costs associated with buying and owning a property, including mortgage fees, transfer fees, utilities, lawyer fees, homeowner’s insurance, and maintenance fees. It may appear that owning a property is expensive and that the only time you can make a profit from your property is when you sell it years after buying it, but the truth is that you don’t have to wait that long to start seeing a return on investment on your property.
Rent your property out - tenants and companies
Renting out your property is the most obvious way to make money from it. However, this is only feasible if you don’t live in the property or occupy the space. You can rent out your property to tenants or go down the less traveled route of renting out your space to companies. Film and photography companies are constantly looking for new places in which to shoot, so consider putting your property up on websites that allow people to find spaces to rent on a daily basis. This can be a great way to make money from your property.
If you are occupying your property and would like to make extra money from it, you should consider house-sharing. This option isn’t ideal for everyone, because not all people are comfortable with the idea of sharing their space with a complete stranger. However, if you don’t mind, consider renting out a room or two for extra income. This option would necessitate having house rules that everyone is required to follow.
If you own an office space, one way to make money from it is to rent out your space to other companies and create a co-working environment. This will help you pay off your mortgage quicker.
Add a garden cottage
If house-sharing isn’t your cup of tea, consider building a garden cottage in your backyard. You can then find a tenant to occupy the space and pay rent on a monthly basis. Many South African homeowners choose this option to generate extra income, making it a profitable choice to consider.
Rent out your property for short-term stays
Short-term rentals have been all the rage for the past few years, and despite the slowdown caused by the coronavirus in the short-term rental sector, they are here to stay. Consider renting your property out on a short-term basis for extra money.
If you own an office space...create a co-working environment.
The benefits of investing in short term rentals is that you make more money than you would renting out your property on a monthly basis. On the flip side, short-term rentals are more demanding than long-term rentals as they require a more hands-on management style, although you can hire a management company to help you manage your listing.
Start a home business
Starting a home business is a good way to make money from your property. The best part is, you’ll be saving on costs because you won’t have to pay rent for your office space and you could possibly qualify for tax deductions when working from home. You’ll also save on time and money as you won’t be spending as much time in the traffic, or as much money on fuel.
Home businesses to consider starting are: digital marketing, designing, personal training, virtual assistance, drop shipping, online teaching, and many more.
Becoming a property investor requires one to do their due diligence...
Depending on how big your property is, you can rent it out as an event space. People are always searching for spaces to host people, especially seeing that the coronavirus lockdown has sent many into the social arena due to isolation-burnout.
Rent out storage space
The South African storage space sector has a lot of room for growth – no pun intended. Storage space is in high demand, with many individuals and companies looking to store valuable items away for a set period of time. To make money from your property, consider renting it or a section of it out as storage space.
...rent advertising space to advertisers.
Add a small advertising board or wall for advertisers
Another way you can make money from your property is to rent advertising space to advertisers. Although digital advertising has taken the world by storm, advertisers are still interested in reaching their intended audience through traditional means. If your property is on a busy road, consider erecting a small board or allowing advertisers to paint on your wall. This is a great way to make steady income as there’ll always be a new product or service that needs to be promoted.
Making money from property is traditionally thought of as buying low and selling high. However, unless you’re flipping property in the short term, it can take years to see a return on investment on your property. There are other avenues to consider to make money from your property which don’t include relinquishing ownership. Weigh your options with the points above and stay educated on the property industry with Private Property.
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