Top tips for landlords to maximise your ROI
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There's one thing every landlord has in common: the desire to maximise their rental property return on investment (ROI). Achieving this not only ensures your profitability but also shows that your investment strategies are working well. Whether you've been a landlord for years or you're just starting out, implementing this list of tactics put together by Jawitz Properties can help you ensure maximum ROI on your real estate investment.
- Know the market and price your rental competitively
Setting your property rental figure correctly is essential for attracting the right tenants - which in turn is necessary for maximising ROI. A tenant willing to pay more is not necessarily a better tenant. Take the time to conduct a comparative marketing analysis to assess rental rates for similar properties in your area - or chat to a property practitioner and ask for their help. When setting your rental price, bear in mind what your property has to offer, how prime the location is and what the current market demand in your area is.
- Keep your property well maintained and do cost-effective upgrades
Maintaining the condition of your investment property is key to maximising ROI. Not only is prevention better than cure, but a well-maintained, freshly painted and attractive home is far more likely to attract the type of tenant that you want.
When you renovate, focus on cost-effective upgrades that make your home more appealing to a tenant. Kitchen upgrades, bathroom remodels and energy-efficiency improvements top the list of upgrades that get noticed. These improvements have a double-edged benefit: in the short term, they make your property appeal to great tenants and in the long term, they add value to your property.
- Minimise vacancy periods by enlisting the help of a property practitioner
Vacancy periods wreak havoc with your ROI, temporarily increasing operating expenses and disrupting cash flow. You can minimise vacancy periods and save time by ensuring that properties are advertised timeously and by maintaining relationships with good tenants. Since property practitioners will have a database of people looking for rental properties in your area, they may be able to connect you with a pre-vetted tenant for whom your home ticks all the right boxes. Having a property practitioner can also help you enforce lease policies like rent payment, maintenance responsibilities and property rules. He or she can also take care of property maintenance on your behalf.
As soon as a tenant vacates your property, get it cleaned and make sure that it's in tip-top condition and ready for a new tenant. Ensure that you market the property and start screening new prospective tenants before the old tenant moves out.
- Maintain great relationships with good tenants
Retaining a good tenant, rather than having to find a new one, is a great way to maximise your ROI. If a tenant pays the rent on time, takes care of your property and follows the rules, then it's in your interest that they stay as long as possible. There are various ways to build positive relationships with tenants. For starters, address their concerns promptly and offer them great service. Keep rent increases as reasonable as possible and respect their privacy as required by the Rental Housing Act.
- Find savvy ways to reduce your operating expenses
One of the best ways to reduce your operating expenses is to anticipate and prevent problems before they come to exist. This means regularly inspecting and maintaining your property, paying special attention to issues like plumbing and drainage. Getting multiple quotes on regular services like landscaping and pest control will ensure that you're getting the best possible rates. Similarly, getting a few quotes on your homeowner's insurance can also lower your monthly expenses.
If you're looking for ways to get more value from your rental property, the best thing you can do is chat to a team of experts. The Jawitz Properties rentals team can provide tailored advice based on your area, your property and your situation. Get in touch today and let us help you get maximum value from your asset.
Author: Jawitz Properties
