Top 5 Ways to Increase Profit on Your Rental Property
January 1, 2021
The following are steps that landlords can take to increase profit on their properties.
- Screen your tenants thoroughly. It’s important to screen your tenants as thoroughly as possible. The tenant screening process will help you understand each tenant’s credit history, income level, and personal history, so you can avoid tenants who are at higher likelihood of missing payments or causing problems in your property. This step can also help you increase tenant retention, reducing vacancies and ultimately making your property more profitable.
- Hire a property management company. It may seem like a move in the opposite direction, since you’ll be paying a portion of your gross rental income for the service, but consider hiring a property management company. Property managers will take care of almost everything associated with your property, including tenant screening, rent collection, and the handling of maintenance and repairs. This will make your property management much smoother and give you more time that you can spend on other endeavors (such as finding new properties to invest in).
- Invest in renovations. Most property owners will tell you the value of investing in renovations. With even a small budget, you can transform key rooms of the property (or the exterior of the property) and make it much more appealing, allowing you to charge more in rent. However, it’s important to remain frugal and judicious in your spending; tenants may break or compromise your additions, so avoid spending too much and exhausting your budget.
- Prioritize tenant retention. The biggest source of profitability loss in rental properties is a vacancy; a period during which your property is unoccupied. Limit and shorten your vacancies by improving tenant retention. You can increase tenant retention by communicating openly with tenants, choosing good tenants, handling repairs quickly, and investing in making the property better.
- Add secondary forms of revenue generation. If you want to increase profitability even further, consider adding secondary forms of revenue generation. For example, you could add coin-operated washing machines and dryers, or offer additional storage space for your tenants for an additional fee. This typically works best with multi-family rental properties, where many tenants can take advantage of these services.
If you are looking to hire a Property Management company to manage your property then consider hiring ACCL Property Management. For free consultation, please email us at info@acclpropertymanagement.com or call us at 905-432-8961
Expert Advise From Your Trusted Property Management Team
It is important for landlords and property managers to take the required steps to ensure that their rental properties are ready for the winter months. You will want to be proactive with inspecting the plumbing, roof and landscape before the cold winter temperatures and winds set in. Doing this will guarantee that you will save money on damages that may occur if these areas are neglected.
If you want to earn as much as you can on your investment properties, it’s worthwhile to use the best property management team you can. If you encounter any of the mistakes below in the management of your portfolio, you may want to switch to a different management firm.
If you own rental properties in Oshawa or Durham Region, it’s crucial to maintain good relations with your tenants. One way to do this is by hiring a quality property management company to handle the upkeep. Are you looking for advice on how to maintain your rental properties in Durham? Look no further. Below are nine critical tips to protect your investment and keep your renters happy.
Screening tenants is one of the most important tasks landlords are responsible for. Applications come in by the dozens for every apartment and it’s their job to sort through them, run the appropriate checks, hold interviews, and determine who will live in your properties. As a result of this constant work, most landlords have a clear sense of what red flags they need to look out for when reviewing applications, but it’s important to realize that not all problems are equal and that individuals with “red flags” on their records may not be bad tenants.
1. Organize Your Bank Accounts
For the landlords and real estate investors, ROI and cash flow are everything. You’re constantly on the lookout for ways to make your rental properties more profitable, which means maximizing the upside and counteracting the downside so that it doesn’t come back to bite you. And even though there are no bulletproof methods of downside protection, there is one method that can significantly lessen your chances of experiencing a financial catastrophe. It’s called an emergency fund.
Find a good contractor who gets the quality work on time is never an easy task. As you search for a contractor to work on your property, here are some tips and tactics you can leverage to filter out the bad apples and find the right fit for your project.
5 Techniques Successful Landlords Use For Rent Collection
As a landlord, you’re in the game of generating cash on your cash. In other words, you’re in the ROI business. But are you really doing everything you can to set yourself up for maximum returns? This a question that you need to analyze through a critical lens. You might consider yourself a fairly savvy person when it comes to finances and investing. (After all, you’re wise enough to invest in an income producing property.) But it’s entirely possible that you’re bleeding money in areas where you could be doing better.