Buying an investment property can help you create an additional income stream, contributing to long-term wealth and financial stability. After all, real estate can certainly be one of the most profitable investments—but only when properly managed.
Understanding how to protect and optimize your property is essential to continue generating income and upholding a high resale value. However, often, it isn’t easy to understand what you can do to optimise your investment property.
In this quick-start guide, we’ll look at the essential steps to take to make the most of your property. Let’s get started.
Choose the Right Insurance Coverage
One of the first steps is to get a comprehensive insurance coverage that is designed around your unique needs. A tailored policy will help you protect your investment and provide you with the funds you need to repair damage should it occur.
For instance, even in the best cared-for homes, there is always a risk of moisture issues and water damage. Additionally, there are some risks that can’t be fully prevented, such as floods, fires, or severe weather. These can damage your home and, without the right insurance, lead to significant financial losses. Be sure to be prepared by working with a reliable insurance company.
Screen Tenants Thoroughly
Next up, let’s talk about the importance of finding the right tenants for your rental property. These individuals will be living in the home you own, and they will play a major role in maintaining it clean and in good shape. Because of this, it is crucial to screen tenants thoroughly.
There are many ways to attract the best tenants for your property. Some strategies include:
- Advertise on reputable rental listing websites
- Use professional-quality photos for your listing
- Set fair and competitive rental criteria
- Conduct a thorough tenant background check
- Carry out credit checks
- Verify employment and income
- Check previous landlord references
- Interview potential tenants in person or over video
Last but not least, be sure to make a decision that is fair and based on consistent criteria. At the same time, be sure to trust your instincts: if something feels off or you don’t believe a certain person is a good match for your property, consider finding someone else.
Keep Up with Regular Maintenance
Regular maintenance is essential to maintain the market value of your home as years go by. This is essential for many reasons. Firstly, a well-cared-for home will attract better tenants and higher rental yield. Additionally, when you decide to sell, a home that is well maintained and has curb appeal can lead to better ROI.
Set Competitive Rental Rates
When it comes to making the most of your rental property, one critical aspect is to set the right rental rates. These can vary based on several aspects.
For instance, if you are renting a small apartment near an industrial or office area, you will be marketing to professionals and their family. Monthly rental should be affordable, and you may be looking to enjoy the benefits of longer-term tenants.
On the other hand, if your property is located in a touristy or coveted area, it is important to compare your offer against the one of competitors and make the most of certain times of the year, such as vacation times and national holidays.
Understand Local Laws and Regulations
Staying compliant with your property is essential to avoid unnecessary fees and costs. It also helps you build a good reputation with the local authorities and with new tenants alike.
If you are unsure about the regulations that you need to meet, be sure to work with a local expert. Having a lawyer and an accountant by your side can help you understand what compliance standards you need to keep up with.
Improve Property Security
Improving your property’s security can help you protect it from external damage, such as vandalism and crime. There are many ways to make your property more secure. Some strategies that may help you include:
- Install quality security cameras
- Use external lighting to make the external area well-lit and deter crime
- Consider installing an alarm with a code that is only shared among trusted individuals
- Build relationships with the neighbours – your community can play a major role in helping you safeguard your property.
- Work with the local authorities or contract the services of a security company to check on your property regularly.
- Check in with your tenants regularly
Last but not least, be mindful of privacy. While you may want to install cameras, be sure to not overlook privacy laws!
Keep Accurate Financial Records
Keeping accurate financial records is essential to avoid missing important deadlines and for tax purposes. Plus, when managing rental properties, you’ll want to have insights into how much profits they are generating and what costs you are facing. If you are unsure how to navigate this aspect, working with a professional accountant can help.
Plan for Property Upgrades
Not all property upgrades offer a high ROI! Certainly, you’ll want to upgrade major aspects like the kitchen, bathroom, and windows after many years or decades of use. However, there are some minor upgrades that can also help you make quality, but out-of-style, details stylish again. And, these improvements can offer the best ROI!
Some projects include:
- Apply a fresh coat of paint to walls and exteriors
- Upgrade lighting fixtures to modern, energy-efficient models
- Install smart thermostats or smart home devices
- Replace old faucets and cabinet hardware
- Add or update landscaping with low-maintenance plants
- Deep clean carpets and flooring or install new flooring in key areas
- Power wash driveways, sidewalks, and siding
- Refresh or replace kitchen and bathroom backsplashes
- Install new, attractive house numbers and mailbox
Work with Trusted Professionals
Last but not least, remember that you don’t have to manage rental properties alone! If you are unsure how to protect and optimize your real estate investment, specialists – such as real estate agents, property managers, insurers, accountants, and legal teams – can help!
Just reach out and find professionals who align with the goals and vision you have for your real estate property.
Article and permission to publish here provided as Contributed Content. Originally written for Supply Chain Game Changer and published on July 17, 2025.
Cover photo by Tierra Mallorca on Unsplash.