One of the questions I often get from potential investors and even landlords who are already renting out their homes is: how do I maximize my return on investment?
Make sure your property is priced properly. If you list your property at a price that’s too high, you’re likely to attract a lesser quality tenant and there will also be increased marketing time and potentially a longer vacancy. That’s money you’ll never get back. It’s important to price your home competitively. This is a key to finding the right tenant and reducing vacancy.
Effective Repairs and Upgrades
Make effective repairs to your property that maintain or increase the value of the property. Don’t waste time and money on things that are nice if it won’t affect your value. For example, installing expensive window coverings is not always necessary. You can put in drapes throughout a property for $5,000. Or, you could put in the faux wood blinds that might cost you $1,100. The drapes are not going to get you any more rent, and it won’t make a difference to a tenant who wants to rent a property. So, there’s a savings right there by not investing in things that won’t add to the value of your property.
Adopt a Business Mindset
Always keep your property well maintained and handle things from a business perspective. For example, you don’t ever want to let your tenants pay rent late. That might seem easier said than done, but you have to keep rent as a priority. That means you handle it from a business perspective and if it’s not paid on time, you handle it appropriately.
These are just a few of the things we recommend when you’re trying to increase the return you get from your investment property. If you have any questions, or you’d like more advice, please contact us at American Heritage Properties.