We’ve never met an investor who didn’t care if his or her rental property made any money. Most of the property owners we work with expect to earn regular cash flow and impressive ROI when they rent out a property in Modesto.
Today, we’re sharing a few of our expert tips to achieving the highest return you can on your investment property.
Provide a Well-Maintained Home
Good tenants want to live in good homes, and if you want to earn as much as you can on your property, you need to offer those good tenants a property that’s safe, habitable, comfortable, attractive, and well-maintained. Before you even list your property on the rental market, make sure it’s clean, functional, and appealing to the best Modesto tenants. Spend some time on curb appeal so you can attract renters with a great first impression. Make small upgrades and updates that are inexpensive but make your home look modern and new. These may be things like new flooring instead of tired carpet or shiny nickel faucets and hardware on drawers and cabinets. Make a good impression with your property, and you’ll earn more rent. You’ll also rent it out faster to better tenants. All these things increase your ROI.
When you have a tenant in place, make maintenance a priority. Routine and emergency maintenance should be skillfully and completely taken care of as soon as you receive a report that something’s wrong. This protects the condition and the value of your asset – leading to higher home values and better returns.
Provide a Competitively Priced Home
Pricing is important to your ROI. You want to earn as much rent as you can, so don’t throw out a low-ball figure just to get a tenant in place quickly. Don’t over-price your home, either. That will only result in a longer vacancy time, and nothing kills ROI faster than a vacant rental home. Take some time to really review the market. Look at comparable properties in your neighborhood and what they rented for. Gather the most reliable rental data you can find before you price your rental home, and be willing to stay flexible. If you don’t get any interest after a week of having your home on the market, it may be overpriced and you should consider reducing the cost.
Focus on Tenant Retention
Tenant turnovers are just as expensive as vacancies, and they eat into your bottom line. Keep your ROI strong and consistent by keeping great tenants in place. The best way to do this is with open and consistent communication. Be responsive and accessible. Respond to those maintenance issues right away and offer incentives and rewards when your tenants renew their leases. A gym membership might entice good tenants to stay, or a free carpet cleaning or an upgraded appliance.
Work with Professional Property Managers
The single best way to increase your ROI is by working with professional property managers. Your property management company will know how to ensure your property is earning as much as it can. We enforce your lease, collect rent on time, pay attention to preventative maintenance, manage tenant relationships, and ensure that everything is working as it should. Professional management keeps your costs down and your profits up.
If you have any questions about increasing your ROI or you’d like to talk about additional tips, please contact us at New Bridge Management. We’d love to tell you more.