Landlords are finding innovative ways to maximise their earnings in 2024. With the evolving real estate market and shifting economic conditions, staying informed about the latest trends and strategies is essential. Here are five different ways landlords are making money this year.
1. Short-Term Rentals
Short-term rentals, primarily through platforms like Airbnb, are a popular way for landlords to increase their income. By renting out properties for shorter durations, landlords can charge higher nightly rates than traditional long-term rentals.
This strategy is particularly effective in tourist hotspots and cities with high demand for temporary accommodation. According to a report by Property Wire, many landlords have seen significant increases in their earnings by switching to short-term rentals.
2. Co-Living Spaces
Co-living spaces are becoming a trend in urban areas with high housing costs. These spaces offer individual rooms within a shared apartment, targeting young professionals and students who prefer more affordable living arrangements. This model allows landlords to charge per room, often generating more income than a single-family rental.
Co-living not only increases revenue but also ensures higher occupancy rates. As highlighted by The Guardian, co-living arrangements are gaining popularity as a cost-effective solution for landlords and tenants.
3. Guaranteed Rent
The guaranteed rent scheme involves reaching out to real estate services that manage your property (and all things associated with it) without having to worry about voids. In essence, you’re getting guaranteed rent for everything in a single month, and you don’t ever have to worry about finding tenants.
This approach has been successful for many, whether or not you’re in a high-demand area or not.
4. Property Upgrades and Renovations
- Modernising Kitchens and Bathrooms: Upgrading kitchens and bathrooms can boost rental income. Tenants are willing to pay more for modern, stylish spaces. New appliances, updated fixtures, and fresh paint can make a big difference.
- Adding Energy-Efficient Appliances: Energy-efficient appliances save tenants money on bills and are eco-friendly. Installing these can attract more tenants and allow landlords to charge higher rents.
- Enhancing Curb Appeal: First impressions matter. Improving the exterior of a property, like landscaping and painting, can increase its appeal. This can lead to quicker rentals and higher rent prices.
- Updating Flooring and Lighting: New and modern lighting make a home look more appealing. These updates are relatively affordable and can significantly boost rental value.
- Creating Additional Living Space: Converting basements or attics into livable areas can add more rental space. More space means more income, as tenants are willing to pay for the extra room.
5. Offering Additional Services
Landlords are diversifying their income by offering additional services to tenants. These can include providing furnished apartments, cleaning services, and property management. By offering a more comprehensive living experience, landlords can justify higher rents and create additional revenue streams.
The Times has reported on landlords who successfully implement this strategy, noting that it leads to higher tenant satisfaction and reduced turnover rates.
6. Commercial Property Rentals
Renting out commercial properties is another way landlords are making money. With the growth of small businesses and startups, there is a steady demand for commercial spaces. Landowners can diversify their income sources by renting out office spaces, shops, or warehouses. This trend is powerful in urban centres with high commercial real estate demand.
Takeaway
Landlords are adopting various innovative strategies to maximise their earnings in 2024. Whether through short-term rentals, co-living spaces, rent-to-rent schemes, property upgrades, or offering additional services, the key is to stay adaptable and informed about market trends. By doing so, landlords can continue to thrive in an ever-changing real estate landscape.
