Many rental property owners find themselves wanting to venture into other industries and endeavors after growing weary of the challenges that come with property management. The desire for a higher ROI is amplified when you have to deal with the hassle of problem tenants who cause damage to the property and/or don’t pay on time.
Factor in the risk that your property can go vacant for months on end or fall victim to “squatters” who refuse to leave until you take them to court, and it’s easy to see why many property managers are slapping their forehead in despair. At this point they begin trying to think of another way to invest their money. If that sentiment sounds familiar, it’s time to look at other investments with a higher ROI than rental properties.
1. Promoting the Sale of Your Property
Most investors would prefer to get a large lump sum return on their property instead of having to rent it out for years, but it’s not always easy to find a buyer that will pay what you’re asking. Investing in photography, property listings, graphic design, and marketing services will help you reach out to more buyers so that you can sell your rental property and make a decent profit in the process.
You can also try contacting companies that specialize in buying properties. Max Cash Home Offers provided great insight into 9 Investments with Better ROI than Property Management in a recent blog post and accompanying infographics.
2. Building an eCommerce Business
After your marketing investments pay off and lead to the sale of your rental property, you should have a sizable chunk of cash to invest, and that combined with a decent credit score should be all that’s needed to start a slew of online retail revenue streams.
3. Private Investing via Peer-to-Peer Lending
Peer-to-peer (P2P) lending platforms like Prosper make it easy to become a private financier for individuals and small businesses seeking loans of all sizes up to $50,000. On average, you can reap an ROI as high as 20% annually just by loaning your money out through these networks, and with credit checking tools and the ability to compare business plans before selecting a loan candidate, the risk is relatively low.
4. Automated Investment Services
Signing up for an online “robo-advisor” service will let you build a diversified portfolio of investments quickly. Although the average ROI for a managed portfolio is relatively unpredictable, there’s the potential for significant returns. Even if you wind up not making as much as you would with other investments, the risk is very low because the funds are managed by professionals.
Invest in a New Degree or Training Course
Investing time and money into your education can pay off by giving you the credentials, certifications, and skills needed to advance your career or drive your business endeavors forward. In addition, many training courses are relatively inexpensive when you consider the shiny star they add to your resume, and you can use student loans and/or scholarships to help pay for your degree tuition.
The Importance of Investing in Yourself
After you’ve thoroughly explored all of the above options, you’ll eventually come to the realization that your ROI will increase along with your knowledge and expertise. Good investors make good investments, so you should strive to become one by diligently studying finances, business, and economics in your free time.