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Nowadays, we have a lot of different ways to earn money, and one of them is getting involved in the real estate market. We live in a world in which being financially stable is crucial if you want to have a normal life, so people often look forward to investing, starting their own business or doing anything else they can to get that cash flowing in.

Although we appreciate and support every type of work that someone has to do to earn a living, we’re going to focus a bit on the real estate market, and some of the tricks that you can pull-out to maximize your profit.

If you are currently looking forward to getting involved in something like this, or you’re already researching the real estate market for some time, and you’re looking to make your next big move, this might be the best time to hear our advice.

You’re probably as excited as we are, so let’s end this introduction right here and jump straight into the informative content. Here’s what you need to know.

What does it mean to reposition your property?

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When you are renting a hotel for example, or just a regular house, you most likely have a pre-determined rent that you came up with and presented it to your tenant base. Once you’ve made this deal, it’s not simple to just up the price of the rent, so what happens if you are in need for more money, but you cannot afford to lose your current tenants, or risk not getting new ones at all due to your new price.

Well, one of the most efficient and famous solutions to this problem is something called “property repositioning”. There are numerous ways to do this, and we are going to tell you all about it.

1. The Cosmetic Way

To increase your rent, you have to do some kind of modification to your property, something that’s going to be labeled as an “upgrade”. The first and most obvious way to do this is by doing a cosmetic change, something that’s going to make the entire place look a lot better than it did before.

Re-painting all the walls, landscaping, replacing the interior or remodeling and resurfacing all of your parking lots are a few great ideas, but you can think of your ones because there aren’t any rules when it comes to doing something like this.

2. The Operational Change

Now, this is quite different than the cosmetic changes, but it’s equally as important. Let’s say that you are renting out an entire hotel, and in that hotel, you have managers who need to take care of everything going on inside the place.

If these managers are not doing the job as they should, or they are, but you know it can be better, you can always change them and replace the current staff with more professional ones. However, this is going to cost you money, but you should be getting that money back quite fast because you just did Operational Repositioning, and you’re able to up the rent.

Operational changes focus on functionality, and they have a huge impact on the experience of your tenants, how they’re enjoying their stay and if what you’re offering is worthy of their money or not. If you are interested in learning how the pros maximize profits, you should check out

3. Structural Repositioning

Last but not least, structural repositioning of your property will most likely cost the most money, but it will yield the highest results when it comes to increasing your rent and earning a lot more in the long-run.

This usually means changing the layout, adding new floors, creating swimming pools, opening up a backyard, re-designing the rooms, and almost everything else that changes the structure of your property. These types of investments tend to be the most expensive ones compared to everything else on this list, but as we said, you will be able to advertise a lot better and increase your average rent price if you manage to do them successfully.

Why should I consider doing this?

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A lot of people who feel like their property has a great rent-rate, or that it’s not underperforming at all, are wondering how they can benefit from getting involved with something such as property repositioning, and we have just the right answer.

Repositioning means increasing the overall quality of your place while lowering the expenses and maximizing the profit that you’re gaining from it. It might sound a bit confusing at first, but hear us out.

If you have an older place, with old HVAC systems, for example, you are probably wasting a lot more energy than you should, which also means that your expenses are not optimal. Also, you cannot really up the rent, because tenants see that you have old HVAC systems, so they’re not going to pay more for something that’s not worth as much.

However, imagine changing all of your heating and cooling systems, by adding new ones that spend less energy when they do their job, and on top of that, increasing your rent price. In the long run, you’ll be getting at least fifty-percent more money from your property, both because of the reduced expenses and the increased price.

Tenants of higher quality

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It’s a bit “harsh” to put it this way, but we do live in a world in which there are different classes of people. One example is the classes in the airline companies, you have the business class, economy class, and the first-class.

Well, something similar happens in the world of real-estate. When someone who is financially stable and can allow themselves to enjoy the finer things in life, hears that you completely remodeled your entire hotel, and now you have pools, Jacuzzis, and brand-new apartments with a look that shoots straight for the beach, they’ll get the urge to visit, and paying a higher rent will most likely not be a problem for them.