What are your investment goals?
One of those goals is surely to drive up ROI. You’re investing in real estate to earn money, right? Increasing income and decreasing expenses is the best way to do that, but sometimes it can seem like an impossible hurdle.
Good news. We have three ideas you can immediately implement.
Harcourts Avanti is a full-serve property management company that manages long term as well as vacation rentals in Del Mar, Encinitas, Carlsbad, Cardiff, Carmel Valley, Solana Beach, and the surrounding San Diego areas.
Rental Property Upgrades and Improvements
Making inexpensive upgrades and improvements to your property is an effective way to increase your ROI because these updates will raise your rental value and attract better tenants.
Don’t spend time and money on a total remodel. Instead, try these cost-effective steps. They’ll make your home look newer, more modern, and more appealing to the best tenants.
• Install new hardware on faucets, cabinets, and drawers in kitchens and bathrooms.• Replace drawer pulls and knobs on the cupboards. • Hang some lights or use tube lighting to strike a functional and aesthetic balance. • A fresh coat of paint always helps. • How’s your curb appeal? Plant some flowers and trim the trees.
The goal is to make the property look and feel welcoming and comfortable.
Work with Reliable Vendors
The vendors you choose impact your ROI. If you don’t respond immediately to a tenant’s repair request, you’re at risk of losing that tenant, which means you’ll face extra vacancy days and turnover time. So, you need vendors who will prioritize your property and provide a high quality of workmanship for a competitive price.
Make sure you establish relationships with vendors before you need them. It’s important to work have the following professionals in your contact list:
• Plumbers• Handymen• Electrician• Cleaning services• Landscapers• Roofers• General contractors• HVAC technicians• Appliance repair people
Trying to find a plumber in the middle of the night over a holiday weekend is going to be difficult if you don’t already have a relationship in place.
Establishing a Competitive but Profitable Price
Establish the right rental value.
Obviously, you want to earn as much as you can in rent every month. But, you don’t want to overprice your home. If you ask for a rent that’s too high for your market or your tenant pool, your property is going to be vacant longer than it should be, and nothing will eat into a landlord’s ROI like a vacancy.
When you’re pricing your property, consider your location as well as the size and condition of your property. Examine the neighborhood and get an idea of what similar properties have rented for recently. Look at your competition and figure out how your property measures up.
There’s a really good way to increase your ROI, and it’s easy: work with a professional Del Mar property management company that understands the market and understands your expectations.
We can help! Contact us at Harcourts Avanti and we’ll talk about your investment goals.