Whether you’ve recently purchased an investment property or have long-held properties, it is always good to review your assets to ensure maximum returns on your investment. The major goals of investing in real estate are to increase the value of the property and generate optimal returns from the investment. If you hire a property manager, you should ensure the company offers an advice-driven service that will help maximize your returns. Property investing is very lucrative when you’re getting the best possible returns on your investment. However, the frequent changes in the industry can make it hard to get the best returns even for seasoned property investors. Wondering how to maximize your returns and increase your chances of success?
Here are tips on how to maximize the returns on your investment property.
Regular Small Improvements
Making small renovations on your investment property is important to ensuring maximum returns. Potential tenants need a place they can call home. Ensure your investment property is rent ready, inviting and presentable. A tidy and well-maintained house commands a better price and attracts the best tenants. There are regular pocket-friendly innovations you should have to ensure your home remains in top shape. Giving your property a lick of paint, trimming the lawn, re-surfacing kitchen cabinets and re-grouting are some of the low-cost improvements that will help maximize your investment returns.
Research the Market
Research the market and ensure you’re charging an equitable rental price as the houses similar to yours. If you find that you’re charging less than the market price, arrange for rental increments according to the terms of the lease you have. When the average rental price rises in the market, the value of your property should rise along with it. Overpricing your rental property will have your property sit vacant for an extended period while under-pricing it will reduce your returns. Ensure you price your property right for you to maximize your returns.
Since most landlords don’t allow tenants to own pets, you can use it as an investment strategy. Permitting tenants with pets on your investment property can attract premium rents. Although there are challenges of allowing pets on a property, it is a worthy option to ensuring maximum returns. You can charge pet fees which will ultimately increase your rental income. Moreover, pet owners don’t easily move and therefore you have longer tenancy.
Careful Screening of Tenants for Your Investment Property
Non-payment of rent and premature move-outs are some of the expenses that can great lower your return on investment. However, the good news is that you can avoid or rather reduce such expenses by choosing your tenants wisely. While it is important to have your rental property occupied, it also matters who occupies it. Run the credit reports and background checks on your potential tenants to ensure they’re the right tenants for your property. You better be safe than sorry when it comes to rental property leasing.
Necessary Amenities and Appliances
Your potential tenants are looking for a finished product, which is a complete home for them to move in. However, there are many rental properties that lack the HVAC unit, gas cook stove, and a dishwasher among others. If you want to attract good tenants, provide for them the value they seek. When you have these amenities in good working condition, you can be able to ask for a premium rental price without any issues arising. Moreover, you will be able to retain your tenants because they will be easily willing to let go of the value they found in your property.
Avoid Tenant Turnover on Your Investment Property
Reducing tenant turnover is a surefire way of increasing your investment returns. Proper communication and providing incentives to tenants that pay the rent on time are some of the ways that can reduce tenant turnover. You want to keep the good tenants for the longest possible time. Having a vacant property is the nightmare you should avoid as an investor.