Tips For Property Owners + Managers
From commercial to residential properties, increasing your ROI encompasses a wide variety of factors that include but aren’t limited to: researching the local real estate market, tenant acquisition, and routine maintenance and upgrades. Follow these 5 tips to increase overall profits and tenant satisfaction!
No. 1: Implement Strategic Rent Increases
Before raising monthly rental and/or lease rates, you’ll want to do your research on the local Long Beach and surrounding real estate markets, so your prices remain competitive without exceeding the average. As landlord and property owner, you will need to know how much you can increase the rent by annually since sometimes increases are capped by local jurisdiction. You will also need to give your residential or commercial tenants proper notice before making the increase effective.
No. 2: Invest In Renovations
Keep in mind that while looking at your property, potential tenants are going to ask themselves if they can see themselves living in your rental. Any money that you can invest back into your property to make it a more open and inviting living space will ultimately pay off. Remember the following when renovating your residential property:
- » Don’t forget to budget for minor landscaping.
- » Be sure to repaint the interior and exterior every 5 years.
- » Kitchen and bathroom spaces impress tenants the most.
- » Be sure to consistently repair and clean important fixtures before you need to replace them–this will save you money in the long run.
No. 3: Lower Vacancy Rates + Durations
A savvy property management team will be able to help you with the onsite and administrative tasks needed to minimize the vacancies of your property. If you’re trying to reduce your rental’s vacancy rate on your own, be sure to focus on the following:
- » Managing rental increases with tenants in mind
- » Responding to tenant complaints quickly and resolving them thoroughly
- » Keeping your property in order and well maintained
- » Screening and checking the backgrounds of tenants completely–this will prevent any issues before a new tenant signs a lease.
No. 4: Decrease Your Property’s Overhead
To decrease your property’s overhead, you can target various expenses that add up month-to-month or quarter-to-quarter. Focusing on lowering utility bills and energy use is a great way to cut unnecessary costs. You can do this by making your unit(s) more energy efficient and installing fixtures that waste less water. Another tactic for reducing overhead is refinancing your property at a better rate, which will lower your monthly mortgage payment.
No. 5: Utilize Tax Benefits To Your Advantage
Keep in mind that as a Long Beach property owner, you receive more benefits than any other local taxpayer because your property involves you in the worlds of business and real estate. Be sure to consult a professional accountant that can help you identify all of the tax benefits you and your property qualify for.
Mistakes That Will Lower Your Returns
As a property owner and landlord, you know the business of managing your real estate investment is multi-faceted and encompasses multiple factors. From keeping tenants satisfied to staying ahead of the curve when it comes to the local Long Beach real estate market, managing your property much less increasing its value and return, is no easy feat. These are the most common mistakes that new and established property owners and investors make that lower overall ROI.
- » Not being selective enough while securing new tenants
- » Failing to treat investment properties like a business
- » Allowing small repairs to build up and become more costly
- » Not being selective enough when purchasing properties
- » Buying rentals in run-down neighborhoods
- » Purchasing property at the peak of a buyer’s market
Long Beach Property Managers You Can Trust
When managing your Long Beach rental, it’s important to consult professionals with experience and expertise. At RTI Properties, Inc., we’ve been providing premium property management services to property owners just like you–handling anything from financial reporting, tenant acquisition, maintenance, and more to keep your rental running smoothly. We even provide an online portal for tenant and landlords to access documents, reports, and pay rent (for tenants). Backed by a professional team of property managers, it’s easier than ever to focus on increasing the value of your rental and maximizing your ROI to grow your overall investment portfolio.
To learn more about our full suite of property management services and/or receive a free property management quote, call our team directly at (310) 532-9122.