One of the primary goals of any real estate investor is to maximize the return on investment. Following are 5 tips to increase the ROI on your rental properties:
1. Ensure Your Property Is Rent Ready
One of the most important steps in increasing ROI on your rental properties in making them rent ready before marketing the property. Vacant properties cost you money. Making sure that the carpets are clean, there is fresh paint, appliances are clean and in working order, the yard is clean, personal items are removed, and all necessary repairs and maintenance are complete will shorten the time it takes to lease your property and increase your ROI.
2. Market Your Property Well
Limiting the marketing of your property will limit the number and potentially the quality of applications you receive for your rental property. There are a number of rental property websites that you will want to make sure that your vacant rental property is posted on. Depending on the location and type of rental property you own, you may also want to target specific businesses and organizations that may be likely to rent your property such as large employers in the area, near-by military bases, or schools and universities.
3. Thoroughly Screen Your Tenants
Placing qualified well screened tenants into your rental property is vital to increasing the ROI of your rental properties. Having an unqualified, problem tenant, can be one of the most draining mistakes both financially and emotionally any rental property owner can make. A good screening process will include a credit check, verification of income and employment, reference checks, rental history, as well as running a criminal check, and screening for any previous evictions.
4. Conduct Regular Inspections
Many rental property owners and property managers only inspect their rental properties at move in and move out. This can easily lead to higher maintenance and repair costs by deferring small items until they become big issues. Having a regular inspection program will ensure that the property is being maintained and that routine maintenance is being conducted to ensure the property is well kept and the tenants are happy with the condition of the property.
5. Have a Tenant Retention Program
Reducing tenant turn over and keeping good tenants is vital to the long term ROI of your investment properties. Make sure you have a good communication system with your tenants and that you provide incentives for things such as paying the rent on time caring for the property.