Investing in rental property is one of the most profitable things you can do, but just because you own one doesn’t mean you get to en-cash checks all the time. There will be times when you are breaking even or even in the red.
Real Property Management and other rental property management companies in Portland list the following strategies to become and remain profitable in this competitive industry:
Reduce Turnover Rate
Turnover increases your costs in a variety of ways like advertising, paint jobs, redesigns, replacing flooring, and other improvements or repairs to attract a new tenant. That’s why it’s important to find a long-term occupant that takes care of your property. Screen potential tenants and find out if they are low maintenance to keep.
Get a long-term occupant so you have money coming in regularly and you don’t have to worry about turnover. Screen potential tenants if they are staying for a short or long time. If they don’t say this outright, identify where they are in life. Did they just finished college and looking for their first job, or are they are old enough to marry? These small details provide you with a glimpse of what their future and long-term plans are.
If you can’t reduce the vacancy rate of your property, reduce the time it takes to fill it. The longer you wait without a tenant, the higher your costs will be. Make your property stand out by making improvements to its exterior and interior. These are differentiation points, especially if the properties in the neighborhood are around the same price.
Add value and make more money out of your property by adding vending machines, coin-operated washing machines, or rent out a swimming pool. These will not only entice tenants to sign up for a long-term lease, you also create additional revenue streams.
These are strategies that boost the profitability of your rental property. These also add value to the services you offer, keeping tenants happy and satisfied long-term.