Back HomeHacks for higher returns on your rental property
There are many ways to increase the return on investment (ROI) of rental properties, from comprehensive marketing strategies to professional property management. If you’re investing in College Station real estate, here are some great strategies to try.
KNOW YOUR MARKET
When looking for ways to increase the ROI of rental property, it is important to do research and gain a deeper understanding of the local rental market. Knowing the needs and concerns of your ideal tenants will help you come up with more effective marketing strategies. It will also enable you to provide tailored services for better tenant retention and increased rental income.
When doing research on tenants, determine their preferred location, amenities, design, layout, and living space. Learn about their financial considerations and monthly budget for housing. This will make it easier for you to attract and retain the right tenants.
ADJUST YOUR RATES
Set competitive rates and change them as market conditions change over time. Consider adding a small profit margin on top of regular market rates to help boost your ROI. You can also offer new tenants perks and incentives, such as a lower security deposit, free gym trial, or free parking for a limited time while still setting a competitive rate for your rental property.
INCREASE THE PERCEIVED VALUE OF THE PROPERTY
Make your rental property as appealing as possible to your ideal tenants:
- Maximize curb appeal – Curb appeal refers to the overall exterior of a rental property. Make a positive first impression on potential tenants with a well-kept yard, potted plants, quality paint, and pathways and entrances that are free of obstructions.
- Update the interior – You can enhance your rental property’ perceived value by updating the interior and making minor but noticeable improvements. Consider repainting the walls, refinishing the floors, installing new countertops, and replacing old appliances. These changes can make your property more appealing to potential tenants who are willing to pay extra for an aesthetically pleasing apartment.
- Improve energy efficiency – Some tenants are willing to pay a premium for energy-efficient appliances and features that will help keep their utility bills at a minimum in the long run. Consider upgrading to ENERGY STAR® products and appliances, installing LED lights, and improving insulation.
SCHEDULE REGULAR MAINTENANCE WORK AND INSPECTIONS
In addition to updating your rental property, it’s also worth investing in maintenance work, tune-ups, and inspections. Regular maintenance work and inspections will help you avoid costly repairs while making your rental property more attractive to potential tenants.
Follow a regular maintenance schedule and create a budget for it. Work with trustworthy contractors and tradespersons who are capable of doing high-quality work. Lastly, don’t skimp on repairs. Invest in quality repair services and replacements.
HAVE CONTRACTORS BID ON MAINTENANCE JOBS
When choosing a contractor for maintenance work and repairs, shop around for the most competitive rates. This will give you the opportunity to compare rates and reduce overall spending. Maximize your budget by hiring a contractor who can provide quality work at the best rate possible.
USE SOFTWARE AND AUTOMATION SYSTEMS
Boost your ROI using software and technology that can automate tasks, syndicate listings, and send payment reminders or notifications to existing tenants. Property management software can help you keep daily operations lean and profitable by helping you identify unnecessary expenses or potential avenues for income generation.
Set up an automated rent collection system for tenants with recurring payments. This will help increase the amount of rent you collect each month. It can also lessen the likelihood of late payments and reduce the amount of time you spend talking to delinquent tenants. Advanced technology could also help you provide better service to existing tenants and, as a result, improve tenant satisfaction and retention.
OFFER PAID SERVICES
You can boost ROI by offering extra services for an added fee. This will help you generate new revenue opportunities and make living on the property more convenient for tenants. Additional paid services typically include laundry, cleaning, dog walking, Wi-Fi upgrades, and meal preparation and delivery.
CROSS-PROMOTE VACANCIES AND AVAILABLE UNITS
Reduce vacancy rates by marketing your rental property across different online platforms. In addition to popular listing sites, you could also promote your listings on social media, online groups, and digital magazines. This will help you gain maximum exposure for your rental and keep vacancies to a minimum.
Learn more about Berkshire Hathaway property management when you contact the team at 979.694.8844 or send them a message. As an established real estate brokerage firm, Berkshire Hathaway HomeServices Caliber Realty provides access to professionals with knowledge and expertise on rental properties.
