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 firstname.lastname@example.org or call us at 905-432-8961