According to the Pew Research Center about 70% of properties ‘are owned by individuals, who typically own just one or two properties.’ Many landlords struggle to keep up with mortgage payments, maintenance, property taxes, etc. If that sounds familiar… it doesn’t have to be that way. There is another option.
Consider the following:
1. CHARGE MARKET RENT
It might seem like a no-brainer, but we speak with property owners and investors every day who are self-managing and under-charging rent, sometimes by hundreds of dollars a month. For owners that own multiple properties, that can add up to thousands of dollars a month!
Sometimes the owners don’t want to ‘upset the apple cart,’ so they haven’t raised rent in years. Others just don’t want to be ‘the bad guy,’ so they take the hit themselves. Then there are those that just don’t know what the market rent is in their area, especially with the dramatic changes over the past couple of years.
A qualified property management company will know the appropriate rate to charge, and will market the property to get vacancies filled quickly. They will run your property like a business – because that’s what it is. In many cases, the increased cash-flow pays for the property management fee and puts money in your pocket.
2. REDUCE TURNOVER
Attracting quality tenants may be one of the most difficult parts of being a landlord, but it makes all the difference. Having a thorough tenant screening process will help you maximize your return and minimize the hassle.
Vacancies tend to strain a landlord’s financial situation as much as anything – continuing to pay for the property yourself, without generating any income.
If you’re not sure where to start, find talk to an experienced rental management company. They can help market the property, attracting the best tenants, and ensure your tenants are happy during their stay. Happy and satisfied tenants tend to stay longer and can reduce turnover rates naturally.
There’s a lot of competition in this market, and not all property managers are created equally, so choose wisely.
3. SIMPLIFY MAINTENANCE
Another critical part of keeping tenants happy is addressing maintenance needs quickly. The older the property, the more often the property will likely need attention. However appropriate maintenance, especially preventative maintenance, can help preserve the value of your real estate investment.
Work with qualified and insured professionals to address your maintenance issues. Low quality repairs may end up costing more in the long run, so don’t cut corners. At the same time, repairs and improvements should not break the bank. Your property management company can help you find that balance, interacting with both the tenant and vendor. Having a trusted partner that keeps things simple makes a big difference.
The RPM Team will help you execute at a higher level, increase your ROI and decrease the DIY, allowing you to focus on what you’d rather be doing… that’s what we call REAL Freedom.
READY TO CHAT?
Come find out why more than 40,000 property owners trust Real Property Management to help maximize the return on their investment.
Give us a call today!
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