Buying a rental property?

Buying a rental property? You’ll need this tip.

One of the best things you can do when you buy a rental property is to learn from the mistakes of others and understand what really maximizes your rental property income.

The tip: A better rental price attracts better tenants. Owners tend to push rental prices higher to maximize their investment. But in the long run, trying to get the highest price for your rental could backfire.

Successful landlords have learned to price on the lower end of current rental prices. The rationale: The larger pool of applicants will allow you to choose a better tenant, one that will stay longer, creating more stable income for you. Remember, if you are constantly having to re-rent a property, vacancy months will turn a higher rent into a lower return on your investment over time.