Maximizing the return on your investment property requires you to do two things:
- Earn as much rental income as possible; and,
- Increase the value of your asset.
This can be challenging, especially when you don’t have control over things like market conditions and tenant behavior.
But, if you focus on the things you do control, you can effectively increase the profitability of your rental property.
Take Care of Preventative Maintenance
Ignoring or putting off minor repairs will only lead to larger maintenance problems and more expensive fixes. It will also upset your tenants, which means they won’t renew the lease, and you’ll be left with an expensive turnover and unnecessary vacancy days.
When you’re intentional with a proactive, preventative maintenance strategy, you preserve the condition of your property and show your tenants that you care about the home. When a repair request is submitted, take care of it. Schedule regular system checks and service so you can be sure your heating, air conditioning, plumbing, and electrical equipment are functional, safe, and efficient.
Unexpected emergencies are sure to happen. But, you can prevent the expensive deterioration of your investment by taking care of small repairs right away, and keeping an eye on how your property’s components are aging and functioning.
Regular Property Inspections and Evaluations
Inspecting your property will also help you increase the return you earn on your investment.
Because you’ll get an idea of how well your tenants are taking care of it. You’ll also have the opportunity to notice and address any maintenance items that have not been reported but need attention.
It’s critical to inspect your property thoroughly before a tenant moves in. Take pictures, make notes, and document the condition of the home completely. You’ll want to do a similar inspection after a tenant moves out so you can compare the condition and charge the security deposit accordingly.
We recommend you inspect the interior of the property at least once throughout the tenancy. Schedule a time with the tenant to walk through the property. Take pictures and notes, and if you notice a lease violation, get it rectified immediately. If there’s some deferred maintenance that needs to be taken care of, schedule your vendors right away.
Make Smart Updates and Upgrades
You need to be smart about the improvements you make to your property. Don’t invest thousands of dollars to remodel your kitchen if spending a few hundred dollars on better hardware and new floors will do the job.
Tenants are looking for a modern, comfortable place to live. They will pay attention to the kitchen and the master bathroom. Make sure the paint is fresh, the floors are clean, and the landscaping is neat and low-maintenance. A property manager can offer advice about your specific market and what you should do to attract quality tenants and higher rents.
These are just a few of the ways you can increase your ROI. If you’d like to hear more, please contact us at Assured Management, Inc. We’re here to help you earn more and spend less.