In a mature market, most of the customers are having their needs met. Demand is a little lower and supply is a little higher. In the rental market, this can mean it takes longer for your property to rent, or you have to work a little harder to hang onto your good tenants. When there are plenty of rental properties to meet the needs of tenants, you can still earn a high ROI with your own investment home. Today, we’re sharing three specific ways to do that.
How to Make Money in Property Management: Differentiate Your Property
In a mature rental market, you need to make your property stand out. Some ways you can do that include providing inexpensive upgrades and improvements to the home that will get the attention of great tenants. You don’t have to renovate an entire kitchen, but installing new hardware will make the room look new. Replacing old appliances with energy efficient appliances will be a great selling point during showings. Demonstrate that you’re willing to allow pets, and provide things like lawn care or pool maintenance if those services apply to your property. You can earn more when you have something special to offer.
How to Make Money in Property Management: Retain Great Tenants
Once you have an outstanding tenant in place, work hard to keep that tenant. Turnover costs are high, and in addition to the cleaning and the new paint and the new carpet, you’ll have to endure several weeks of vacancy while you’re looking for a new tenant. Avoid those costs and earn more money by keeping your good tenants right where they are. Offer incentives when it’s time to renew the lease, and make sure the market supports any increase in rent you’re considering. Let your renters know you appreciate them by being available and responsive.
How to Make Money in Property Management: Manage Maintenance
Keeping your maintenance costs in check will have a huge impact on your ROI. In a mature market, tenants will immediately start looking elsewhere if their repair requests are not being addressed at their property. You can cut down on major expenses by taking care of preventative maintenance. Have your HVAC system inspected and serviced every year. Get your roof checked out and your gutters cleaned. When you preserve the condition of your asset, it grows in value.
These are just a few of the ways you can make money on your long term investment in any real estate market. If you’d like to talk about real estate investing or you have any questions about New Orleans property management, please don’t hesitate to contact us at Latter & Blum Property Management.