- Self-Directed IRAs
- Other Tax-Advantaged Accounts
- Self-Directed Investment Options
- How to Get Started
- The Equity Trust Advantage
- Resources for Individual Investors
- Specialized Custody Solutions
- Custodial Accounts
- Alternative Investments
- Innovation & Technology
- Resources for Investments
- About Us
The following blog post was provided by Real Property Management.
If you’ve taken the leap into single-family rental property ownership, chances are you have one main goal in mind: to make a profit. And while investing in rental real estate can be a very lucrative way to go, to make it pay, you’ve still got to use smart strategies to ensure that you’re getting the best possible return.
The good news is that there are steps you can take now to maximize your property’s return on investment in the new year. Here are a few of the top tips for maximizing ROI this year from rental management pros.
Ways to Get the Most from Your Investment Property
To get the best possible return on your single-family rental property, it’s important to start by getting – and keeping – your property in move-in condition. This is true whether you currently have a tenant or not.
The quickest way to lose money on a rental investment is to let your property condition deteriorate or assume that your tenant will be handling all of the necessary maintenance and repairs themselves. Instead, it’s important to set up and carry out a proactive property maintenance schedule.
Proactive property maintenance is all about catching and taking care of small problems before they develop into larger, much more expensive ones. Implementing proactive maintenance begins with regular, detailed property inspections, then includes both preventive maintenance and making small repairs and improvements as they are deemed necessary.
Despite the fact that you are doing more maintenance more often than your more traditional wait-until-it-breaks approach, over time proactive maintenance tends to cost less than dealing with expensive emergency repairs and, in the end, ensures your cash flows stay in the black.
Upgrade marketing and screening process
Another important way to keep your rental income high and expenses low is to market your rental property and screen potential tenants more effectively. In a very literal sense, your ability to profit from your investment depends on finding a quality tenant who will not only keep the property in good condition, but who will also pay their rent every month, on time and in full. If you are experiencing long vacancies or are having difficulty collecting the rent, you can address both issues through upgrading your marketing and screening processes.
On the marketing side, having professional materials, quality photos, and these days, a virtual walk-through of your property are all important to drawing in the kind of tenant you want. Of course, you should first identify who your ideal tenant is, and then customize your marketing message to best appeal to them.
You also need to advertise in places where your ideal tenant spends their time. In some situations, you may still be able to get away with simply sticking a “For Rent” sign in the window and placing a classified ad in the local paper. But for many property owners, reaching tenants will mean going digital, using social media, websites, or online rental listings. Consider using a quality property management company like Real Property Management, equipped to take care of activities like these far more thoroughly than most individuals.
[Related Video] Real Estate Investing with Little Capital: Master Leasing
Similarly, finding a quality tenant depends on a thorough but efficient screening process. It’s important to collect information and check an applicant’s criminal and financial background, as well as to reach out to their references and prior landlords. The more carefully you screen beforehand, the more likely your tenant will be the responsible renter you’ve been hoping for.