Earning money via rent is a brilliant way to gain a profit from your investments. Having said that, you will struggle to earn a lot of rent if you don’t invest in the right property. It all starts with choosing the right property type to invest in. There are many different options at your disposal, both commercial and residential. So, here are the top types you should invest in if you want to earn rental money:
Apartments
If you’re looking to invest in residential property to rent out, apartments are your best bet. The majority of people want to buy their own house, but they don’t mind renting apartments. It’s rare that someone will actually purchase an apartment, they’re very much built for rent. As a result, you will have more success finding tenants if you invest in an apartment compared to an actual house. We recently published an article providing a few tips on choosing the right rental property, feel free to check it out before you invest in an apartment. It will tell you everything you need to know to make as much money as possible.
Offices
Offices are a great example of a commercial property that’s designed for rental purposes. You can purchase an office building that might contain multiple offices. Then, you can rent each one out to different businesses, and earn a lot of money. There’s a reason that almost every good commercial real estate broker will advise you to invest in offices; they’re very popular to rent. Most business will rent an office as they can’t afford to buy one. Not only that, but most businesses are keen to find an office to make their company look more respectable. As a consequence, you’re likely to find a lot of potential tenants which means you can play around with the rental price to see who offers the most. Plus, businesses tend to stay in the same office for a long time, meaning you have every landlord’s dream; a long-term tenant.
Retail Space
Retail space is another example of commercial real estate that will earn a lot of rental money. Much like with offices, you’re targeting businesses. The difference with retail space is that you keep your options open. Someone can rent the space and use it as an office, shop, restaurant, cafe – you name it. This means you’re likely to see a lot of potential tenants from different industries enquiring about your retail space. They’ll be keen to get in there and rent it, particularly if it’s in a prime location. The demand will be high, which is what you want from a rental property.
The beauty of investing in properties and renting them out is that you always leave the door open. There’s always the possibility that a tenant loves the property so much they decide they want to buy it. So, you could get rental money out of them for a good few years, then sell your property to them for a profit as well!