Savvy investors are always looking for strategies to increase the profitability of their rentals. Here are some easy ways of managing rental properties for maximum profit.
You have probably heard before that the first impression is the one that counts. Well, this also holds true for real estate. Curb appeal is something many investors don’t think of, but fixing that fence, pressure washing the driveway, or giving the house a fresh coat of paint goes a long way in getting renters interested.
Obviously, you should have appliances in your rental property. It is one of the first things, after curb appeal, that potential renters look at. Having an updated kitchen can mean the difference between renting out or waiting around with an empty property. If you can, investing in high-quality matching appliances will serve you well in the long run. And while you are at it, make sure you buy energy-efficient appliances, as green features will attract millennials.
Adding value to real estate can be as simple as investing in smart home technology, like thermostats, doorbells, and camera systems. You’ll likely get the biggest bang for your buck with a high-tech smart lock, which provides an added layer of security. Potential tenants, especially millennials, are often willing to pay more for properties that are fully automated or outfitted with smart tech.
Allowing pets in your rental property will increase the number of potential clients, and will also allow you to upsell and generate extra income depending on the number of pets the renter will have. Also, depending on the market, not allowing a pet can greatly hurt the rentability of the home and could increase your vacancy periods.
When managing rental properties for maximum profit, one should try and think of every possible way they can make the tenants’ life easier. For millennials, this may mean being able to pay online through whatever online payment system you have available. Provide your tenants with the possibility to pay you their way and you will make them very happy at little or no cost to you. The same thing applies to communication preferences; instead of calling, perhaps use text or email.
Here’s a fun value-adding real estate investing tip – have a party. Well, an open house. This is a fantastic technique, often used by real estate agents for buyer clients to attract visitors and renters. A well-planned and professional open house will attract lots of guests, making the property seem desirable. Plus, showing prospective tenants a property takes time. An open house lets you consolidate showings into a single period, saving time in the long run.
A great way to bring value to your property is to consult with the best. If you are a property owner who has questions such as, “Are vacation rental properties profitable?” or “How much profit should you make on rental properties?”, or simply would like to learn more about the benefits of working with a Southern California property manager, give our team at Optum Real Estate Management a call today at (949) 478-4695.