Tips for Maximizing the Return on Your Rental Property

Landlords have many more expenses than most tenants realize. There are property taxes to pay, repairs to make, and sometimes legal fees to contend with. Because of the significant overhead of renting out properties, it’s crucial to maximize the return on your investment. One of the most effective ways to optimize your business and improve your bottom line is to partner with property management services in Mesa, AZ. A professional property management service will keep your tenants happy and encourage on-time rent collections, among many other benefits. rental - pricing

Price Your Unit Correctly

If you have a new vacancy, take a close look at the old rental price and determine if it should be updated. Consider asking your rental management company if the rent is reasonable for the area and type of property. Take a look at other rental prices in the area to see how yours compares. If you do decide to raise the rent, make sure your property can justify the increase. Will the tenants be getting a newly remodeled apartment? Are there unique features that the property boasts, such as skylights, a private garden, or eco-friendly appliances?

Target the Right Tenants

Pricing your unit correctly will only help you maximize the return on your investment if you choose tenants who will actually pay the rent each month. This is where rental management companies are lifesavers for landlords. A professional property manager will screen tenants in accordance with federal, state, and local fair housing laws. The property manager can check references and employment to make sure the tenant can pay, and he or she will rigorously evaluate the likelihood that the tenant will treat the property responsibly—which will save you money when it’s time to fix up the place for the next tenant.

Identify High-Value Renovations

Prospective tenants are attracted to the idea of moving into a newly renovated unit and they generally are willing to pay more for the privilege. However, it isn’t necessary to renovate the entire unit to take advantage of this. High-value renovations include the kitchen and the bathroom. In these areas, it may be worth it to install new flooring, tile, and appliances. In other areas, consider cutting costs, such as by having carpeting professionally cleaned rather than replaced.