We all want to turbocharge our cash flow with little capital input, but a lot of people assume that this is simply impossible. That’s not the case.
Of course, hard work is necessary, but with the rent to rent property strategy you can increase your income by a significant degree without the need for a huge initial investment.
#1 What is the rent to rent strategy
This is when you rent a property from a landlord for the purpose of subletting it to numerous tenants.
You will need to convince the landlord that this is an excellent choice for them, and it is, as it offers guaranteed rent on their rental properties, as well as no empty periods, reduced property management and the guarantee that the internal condition is maintained.
A lot of people find that convincing their landlord is the most difficult part. After all, most landlords don’t rent out for the purpose of someone else renting their property out. It will go against your contract in most likelihood. This is why you need to arm yourself with all of the details so that your landlord will be willing to renegotiate.
You also need to make a compelling argument, for example, show the landlord how going down this route will cover his lender’s mortgage insurance and all of the other costs associated with his or her property, as well as giving him or her some more money in the bank each month.
#2 How the profit accumulates
You can then find yourself making AUS$1,800 a month, or sometimes even more, as you will rent out each room in the property instead of renting out the entire building to one person, as your landlord has done for you.
So, let’s say you rent the property to five tenants individually, you will collect five rents each month, and once you have deducted your costs, such as the rent to your landlord, any utility bills and maintenance expenses as well as insurance, you will pocket the difference. It is as easy as that. If you choose wisely, you won’t need a high refurbishment outlay, a huge deposit or a mortgage, and you can start making money straight away.
The phrase ‘choosing wisely’ is emphasized. You need a solid rent to rent property strategy in place to ensure this is a success, which is why a lot of people turn to experts to help them get this approach off the ground.
There are companies that are experts in this approach and they can help you to get off the ground running if you are unsure.
All things considered, if you are looking for a feasible way to make a second monthly income, this is definitely an option worth considering.
What are you doing to increase your income with your renting strategy?