Tips For Getting the Best ROI on Your Whittier Rental Property
The best way to increase the Return on Investment (ROI) you earn on your rental property is to increase your income and decrease your expenses. There are a lot of words and phrases that investors like to use to measure the success of their asset, but it’s really quite simple – you want to earn more and spend less. That’s going to help you have a positive rental experience. It will drive up your ROI and help you feel good about the property you own.
We have a few tips that we like to share with our investors and potential investors for increasing that ROI.
Setting the Right Rental Price
To earn as much income as possible, you need to charge as much rent as possible, right?
You definitely want to make sure you’re earning high rents. This will help your cash flow and your long term ROI. But, you don’t want to over-price your home when it’s vacant. Doing this will lead to a longer vacancy period, and nothing eats into your ROI faster than vacancy. Do a thorough analysis of the market before you attach a rental value to your home, and be flexible. If you’re not getting any interest from applicants after it’s been on the market for a week, lower the price.
Place Better Applicants
A high-quality applicant will deliver a lot more value to you than an unreliable applicant who isn’t so timely with rental payments and doesn’t take care of the property. Make sure you screen thoroughly because applicant placement impacts your ROI and your overall experience as an investor. Look for applicants who have performed well in the past when they’ve rented homes. Find a applicant who is looking for a long term home. Someone who renews the lease year after year will save you a lot of money on turnover costs.
Keep Your Property Well-Maintained
The condition of your home matters. Not only does a well-maintained home earn you more rent, it also keeps your residents happy and increases your retention rate. Respond to your resident’s repair requests right away. Don’t let small maintenance problems become large catastrophes. Inspect the home annually so you can look for any deferred or unreported maintenance.
Properties in excellent condition are worth more on the rental market and when you’re ready to sell. Adopt a preventative maintenance strategy and keep your investment in excellent shape.
Work with Professional Property Managers
Hiring a professional Whittier property management team will help you earn more and spend less on your investment property. Some landlords think the management fee is too costly. But, the value you receive in exchange for that fee will lead to better ROI. With professional management, you can count on lower vacancy rates, better residents, and preventative maintenance. You can also count on less liability. Mistakes are expensive when it comes to rental properties, and you’ll watch your ROI plummet if you’re caught in a fair housing crisis or you’re defending yourself against a security deposit dispute.
Contact us at LS Property Management. We have additional ways to help you earn more on your investment property, and we’d love to share those tips with you.