If you're a landlord or investment property owner, you're likely looking for the highest potential ROI from your properties. Here are some top tips from the professionals at our Property Management company in Central Florida - what to keep in mind when you want to decrease costs, boost revenues, and get more out of a set of rental properties.
Manage Your Costs
This one may be obvious, but one of the easiest ways to get more income out of rental properties is to lower costs. The key, however, is doing so without cutting corners. In fact, offering properties that are in good condition and rich in desirable features may be the number one way to get the most out of your properties.
"When a tenant views a property, they do not want to hear that the owner is going to fix this or that,” says Susanne Hawkins, a professional Property Manager in Central Florida. “Most have had a bad experience when it comes to promises. You could potentially get a better price when the home is in great condition-interior, exterior, up, down and side to side and sparkles when they walk in. You can also expect them to take better care of the property if they are not having to deal with property issues."
So how do you lower upkeep and maintenance costs while making sure your property still shines? One of the best ways is by optimizing your list of contractors.
Getting the best local companies to handle electrical, plumbing, painting, handyman work, etc. can help reduce your costs. Shop around and see if you can find small, yet dependable local teams that can offer you a better deal. As a landlord, your contractor and maintenance Rolodex is extremely valuable.
"Repairs are one of the biggest factors that can cut into your profit margin,” says Shelley Anderson, a professional Property Manager in Central Florida. “Being ‘proactive’ and not ‘reactive’ is one of the best ways to assist in preventing any major expenses. Routine maintenance is one of the most overlooked secret weapons you can have. Semi-annual air conditioning checks and annual plumbing checks are a great way to stay on top of issues that can easily become one of your major expenses."
Make Your Rentals Work for You: Utilize Rental Space
Thinking of making renovations in order to increase the possible value of your property?
Start with current empty or unusable spaces that hold the potential to provide amenities or services for tenants.
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Browse our list of potential rental homes for sale here
For example, an old barn on the property could make a great place to offer additional rental space to tenants. An unfinished basement space could be rented out as storage - think outside the box to maximize your space that could potentially be rented separately. Many properties have sub-par spaces could be upgraded and re-utilized.
By finding the right balance in terms of helpful upgrades, you can potentially increase the value of the property without sinking money into it that can't then be recovered with the increased ROI it provides.
Find – And Keep - Great Tenants
There's another side to maximizing income on rental properties - the people side.
Many experienced landlords remark over and over about how finding reliable, long-term tenants decrease their costs. Many of them understand that replacing an appliance or providing appropriate accommodations for a responsible tenant is going to pay off in the long run. In this sense, it takes money to make money, and it also takes a good set of people skills.
Another major part of getting the right tenants is screening. Landlords or Property Managers should have all the right safeguards in place in terms of credit checks and background checks. But in addition, they need to take care of their tenants, because lower turnover rates should be a top priority for Property Owners.
Another related tip is to find and purchase investment properties located in high demand areas to help lower the longevity of any vacancy.
Keep Up Collections
Another great tip for maximizing rental income is to make sure collections are done consistently and promptly.
Payment delays can mean big costs for a landlord. Late rents may also lead to eviction, a costly scenario to be avoided. When the rent is getting collected promptly, a tenant has less of an economic incentive to jump ship.
Looking for help on these steps for successful rental properties and more? A professional Property Manager can help you through the steps of placing the perfect tenant and beyond! Learn more about our services for property owners here
Looking for your next investment opportunity? Browse potential rental properties in Central Florida here, or find a Realtor who can help you find the perfect property for you.
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