According to The College Investor, 9 out of 10 millionaires in the world generated their wealth through real estate investing.
You're definitely on the right course to become wealthy if you currently own a property. Unfortunately, you may feel like your current income is too low. You feel like it'll take you forever to accumulate the riches you desire.
So, what can you do to boost your returns?
Read on to discover ways to maximize your ROI through investment property management strategies.
Optimize Rental Rates Based on Market Analysis
Underpricing your rental units makes you leave money on the table. However, overpricing them can scare potential tenants away, leading to vacancies. Conducting market research can help you set competitive rental prices.
Check out local real estate market trends to determine the best way to adjust your unit prices. Check the rental rates of other nearby similar properties. The objective is to set a price that allows you to maximize your returns without chasing away tenants.
Minimize Vacancy Periods
Every day a unit on your property remains vacant, you're losing potential income. If you have vacant units, leverage social media and other online platforms to advertise them. Consider lowering the rental rate, even if temporarily, to attract new tenants.
Collect data from people who visit the units to learn why they're reluctant to rent. Most likely, they'll provide you with information that can guide you on ways to make the units more attractive. They can guide you on areas where you can renovate or repair the units.
Regular Property Maintenance
Managing rental properties entails ensuring that all units are in good condition at all times. Unfortunately, some landlords neglect maintenance and repairs. They don't want to spend money on these things as they feel they reduce their returns.
However, ignoring rental property issues can lead to bigger problems like water damage, mold, and pest infestations. These problems can cause all tenants to vacate the property. Landlords might have to invest in costly repairs and renovations.
Avoid this mistake by investing in preventative maintenance. Regularly inspect your property to ensure timely repairs.
Screen Tenants Thoroughly
One of the most common landlord risks is dealing with troublesome tenants. These are individuals who:
- Rarely pay their rent on time
- Cause property damage
- Violate lease terms
Evicting them is costly and challenging, as you might have to sue them.
Review prospective tenants' rental history, income, and credit scores. Ask them to provide references from their past landlords or employers. You want to rent your units to tenants who will abide by their lease agreement terms, such as paying rent on time.
Boost Returns by Seeking Professional Investment Property Management
The best real estate investments are the ones that generate passive income. Generate this revenue by finding the top company offering investment property management.
Hire Mavi Unlimited Property Management to get help advertising vacant units. You can also trust our competent experts to guide you on how to properly screen tenants. They'll adopt property management best practices, helping you boost your ROI.
Call us today to find out more about our services.