Real estate investing is a very profitable game. But, for most strategies, it is a long game. Therefore, small incremental increases can add up to big returns. Here are 13 easy ways to increase your return on investment.
First Impressions
Enhance curb appeal with simple aesthetic improvements to make a positive initial impression. Most people make up their mind on renting a property within seven seconds. Simple aesthetic improvements such as window shutters, painting the front door, mowing the lawn, hedging any bushes or trees, replacing the mailbox or address numbers can be hugely important.
Quality Advertising
It’s simple economics. The more you advertise, the more interested parties you have. The more interested parties, the higher rent you can charge. Effective advertising and high-quality pictures attract more potential tenants, increasing demand and justifying higher rent.
Light It Up and Smell Good
Ensure the property is well-lit and smells inviting during showings. Deep cleaning, open blinds, and good lighting contribute to a positive atmosphere. If you don’t have overhead lights, buy some lamps. And add some air fresheners.
Sell, Don’t Just Show
Build rapport with potential tenants by being friendly and open, without being overly pushy. Highlight the property’s attractive features.
Pricing Strategy
Avoid underpricing by starting at a reasonable range. You can always adjust the price if there’s little interest. But it’s better to start higher and adjust down.
Tenant Screening
Screen applicants meticulously to avoid problematic tenants. Check eviction, criminal records, credit scores, and obtain references. Remember your worst-case scenario is not a vacant unit. It is a unit occupied by a bad tenant.
Consistent Rent Increases
Inform tenants in advance about annual rent increases upon lease renewal. This expectation management helps prevent surprises and improves retention.
Flexible Lease Terms
Offer month-to-month or longer lease options. Shorter leases can come with a higher price tag due to increased flexibility.
Pet-Friendly Policies
Accept tenants with pets, as this broadens the potential tenant pool. Charge nonrefundable pet deposits and monthly pet rent to offset potential damages.
Preventative Maintenance
Conduct regular maintenance and inspections to catch and fix issues early. Preventive measures reduce long-term expenses and improve tenant satisfaction.
Tenant Communication
Maintain positive communication with tenants. A newsletter or social media presence can foster a sense of community.
Added Amenities
Add value by offering extra amenities or services for an additional fee. This enhances tenant experience and justifies higher rent.
Resident Programs
Reward good tenant behavior with a resident program, offering benefits for on-time payments and positive leasing history.
Conclusion
Real estate investing is a profit-making business. Be proactive in increasing your rental returns. If you would like more personalized advice for your specific investment situation, feel free to give us a call.
Kyle Alfriend
Alfriend Real Estate Group
AlfriendGroup.com
(614) 395-1776