Blue Waters Cottages



Table of Contents

Introduction1

Analysis re popularity and profitability of cottages1

Results2

Conclusion2

Recommendations3

References4

Blue Waters Cottages

Introduction

This paper explores the options for Shelley to increase the profitability of her rental properties as Shelley believes that she should also focus on increasing the profitability of these properties.

Many investors spend the first years of their careers looking for and purchasing properties for little or even no down payments. Several of such properties have not been properly maintained by their previous owners and desperately need to be repaired and brought back up to its true potential. Investors are able to increase value on such properties in many ways.

Analysis re popularity and profitability of cottages

Increasing the profit on your rented property investment means either raising the amount of annual rent received from tenants - or reducing the level of expenses. Both are often achievable with a little thought and some careful planning. There are things you can probably do straight away, while others may take a little time.

Raising the rent should not be automatic. Much depends on how the local market is performing and whether there have been significant changes over the course of the year. For example, at the start of the tenancy it may have been appropriate to command a high rent, because tenant demand was high and comparable accommodation supply in the neighbourhood was low. If during the year the volume of available tenants has reduced, while similar letting units has increased, it would be inappropriate to try and increase the rent. Doing so would probably encourage the tenant to vacate.

However, unless the landlord has updated his research (by checking what the local situation is like now), how can he possibly know whether to proceed in raising the rent or not? A little time spent scanning through 'To Let' property advertisements and viewing local ...