Factors That Affect Your Rental Property Profit

Getting engaged in rental property business can give you a considerable amount of profit. By renting out your space or your unit, you get a rental fee monthly. Once you have paid the mortgage payment, you can generate lots of profit from your properties. As you seek to earn money from rental properties, you also need to consider the factors or necessary expenses that could down your total profit. Choosing the right tenant for your unit is crucial in maintaining the condition of your rental property. Upholding the operational and habitable condition of the rental property is essential in keeping the inflow of cash to your pocket.


You get a profit from your rental properties when the revenue that you get is higher than the expenses spent in maintaining the property. Renter’s failure to pay the rental fee can cut your profit margins. If you are relying on the rental payment for paying your mortgage yet the tenant failed to give the rental fee, then you will need to pay the mortgage using your fund. Tenants who default in two or three payments can reduce your profit.


Maintenance of the unit is indispensable in running a rental property business. Normal wear and tear such as broken windows, hinge on doors, changing carpets and plumbing repairs are included in the expenses paid by the landlord. There could be other sorts of costs involved in rental SA property management, and it is identified in the lease agreement. If the landlord pays the utilities such as water and electric bill, these can be costly and impractical. If a tenant refuses to pay utilities, the landlord could set a limit on the usage of such services.


There are times when evicting a tenant is necessary. However, your total costs significantly increase each time you evict a tenant. You will be requested to appear in the court during the hearing and spend money on court costs. It is not impossible to recover the court costs that you have paid, but acquiring them from your tenants can be intricate and demanding. There are also some cases when the occupant tears down your property deliberately. And the severe damage could cost an enormous amount of money for repairs.


An unoccupied rental unit is equivalent to a loss of income for a landlord. And to make sure that people will know that your property is available for rent, you need to spend some of your fortunes in advertising your rental property. The cost of advertising depends on the method that you want to adopt.

Renovations/ Remodel

A landlord has to do some renovations or remodelling on the rental property. The renovation of the building could cost thousand dollars, and this could cut back your profit margins. Besides, at the time renovation is being done, the landlord may not be able to rent out the units until the work is finished.

As you can see, running a profitable rental residential unit business is not easy. However, to make the process easy you can hire a reputable rental SA property management company. The experts know how to handle your property to make the business profitable and reduce your stress. You will just sit down and wait for your monthly rent.