Getting the best rate of return on your properties means keeping them in top shape and, most importantly, keeping them full. It might sound like a large task to keep up with all the different aspects that go into making a property fit to rent, but it is fully manageable with the right team behind you. Here are four areas you can focus on to keep your value up and your rate of return high.
Understand the South Puget Sound Area
Knowing the local area is critical. From a financial standpoint, Property Managers need to know the value of other similar properties in the area, and should be able to clearly see where the properties stand in their value on the market. In addition, knowing the competition will provide a valuable insight into market trends and the aspects that sell, and will help you see what makes a business stand out from the rest in the South Puget Sound area. Pay close attention to how long properties are on the market for, the avenues other companies use to get the word out about their vacant lots, and the typical rates charged for different types of property in different locations.
Market Extensively to Potential Tenants
Having a choice of applicants, and selecting only the best ones to become tenants, is how companies reduce their vacancy times and maximize their return on investment. While thorough screening plays a large part, extensive marketing of rental properties ensures a large pool of applicants to select from. Whether you choose to take on your own advertising, or leave it to a property management company, this means spreading the word over as many marketing channels as possible at the same time. Most successful rental property owners will have all their vacant locations promoted online, in local print media, and on location using professional and eye-catching signage, putting their name where they know their market will be searching.
Screen and Carefully Select Tenants
There is nothing profitable about a tenant that costs more than they pay in rent. It is a fact that only a quarter of your tenants will account for almost all the headaches of rental property management. You can reduce the occurrence of this problem with comprehensive tenant screening – it sounds simple, and it is. Other property management companies will neglect this step as an unnecessary burden, getting between them and their vacant properties, but the fact is it prevents the problems that can lead to defaulted payments, property damage costs, and even legal costs and evictions. By taking the time to screen your new tenants, you get to ensure your properties stay full for longer, and increase your profits substantially.
Stay Ahead of Repairs
Prevention is better than cure, and there is nowhere this is truer than with property management and maintenance. The cost of repairing caulk in a bathroom is always cheaper than ripping up the floor and replacing fittings when a tub leaks, and this has the added benefit of showing your tenants that you care about the quality of their home. This doesn’t even need to be time consuming, if you partner with a property management team like Real Property Management. Never underestimate the power of adding value through preventative maintenance – it’s a tool many successful property owners use to increase their rate of return on their properties.