The power to plan your day how you want and not having to go to a regular 9 to 5 anymore. You can retire, or be in a semi-retirement state (if you still want to do some work on your own, so that you don’t get bored), you can travel on a whim or do whatever you wish with your time. At the same time, you’d have enough money to cover for your expenses, so that you are not forced to do any salaried work anymore.
Sounds really great, doesn’t it?
There are many ways you can achieve this sought-for financial independence: you can run a successful small business, that allows you enough spare time, you can save aggressively and live off your nest egg, you can invest smartly and amass enough capital to fund your lifestyle or you can invest in real estate and get high returns.
Landlord life is not always fun and relaxed (you’ll probably never feel like you fully retired), but owning rental properties can bring you enough spare ‘cash’ to make it all worth it.
Focusing on luxury rentals (like these: https://www.luxhabitat.ae/new-developments/dubai/) is a great way to earn more, since rent on luxury real estate is way bigger than what you’d earn from a regular unit.
Compared to other money-making options, real estate has another great benefit: you can build equity and can resell later, when you are tired of your landlording.
Location, location, location
When looking to invest in rental properties, try to find units placed in great areas. These will attract more tenants and they will be willing to pay more to have access to such an unit.
We have a great example in a friend’s family who were willing to pay $30K extra for an apartment in New Jersey, just because the apartment looked directly over Manhattan. Other apartments in the condominium were placed on the other side, so they were a bit cheaper.
Sure, we’re talking about a family who bought an apartment to live in, not to rent as luxury real estate, but the conclusion still applies: people are willing to pay extra for a great view or a really cool location.
Such real estate is more expensive to start with, but it will also allow you to demand premium rent and get greater returns.
Get a luxury rental property that looks great or make it gorgeous
People who rent such units are not ‘regular folks’. They demand greater amenities and excellent service for their money, so make sure your luxury rental unit is in great shape.
Don’t skimp on decoration and appliance quality, you’ll most likely recover your investment faster, since you’ll get access to tenants who are willing to pay top dollar for your rental unit.
Don’t rely solely on rental / booking websites
We all know them and use them: booking.com, airbnb.com etc. Really cool websites that allow you to list your luxury properties and get people paying to stay there.
But why rely on ‘strangers’ to push your business forward?
You could also get your own small website up and running fast, with a small upfront investment and be able to promote even further.
Take care of your tenants and they’ll promote you even further
Great service makes people talk and you’ll get the best promotion option ever: free endorsements.
Making sure your tenants are well cared for will make them happy and they’ll send you even more business in the coming years. Personal testimonials coming from friends/relatives have a huge impact on anyone, so you’ll most likely never have to worry about promoting too much, since your luxury rental properties will be full of people who heard great things about you and want to do business with you.
Luxury rentals are a lot of work, but they are also a great way to earn a good living, while also enjoying your semi-retirement life.
What else would you add? Any additional tips on how to achieve financial independence through luxury rentals?