Increase your rental profits
One of the elements in trying to maximize your rental profits is to act extremely quickly, as the proverbial bunny would…Besides making sure that you always have decent quality tenants in your units you’ll want to make sure that when there is turnover, you act as quickly as possible to get the unit rented out again with no further delays.
You should make sure that you keep your vacancy rates as low as possible. No unit should go more than one full month being vacant. If so, you’re going to lose money that is preventable from slipping through your hands. In order to achieve this, you’ll have to act fast when a tenant gives you notice of leaving.
Tenants on the move
Since tenants move about many, many times before they ever buy a house, you have to expect turnover, and even with the best tenants, you have to expect them to move around a great deal – job promotions, relocations, family events – they all create change in tenants’ lives. And tenants move around. That’s the nature of the business.
If a tenant stays two years, consider yourself lucky. Most tenants move within a year – or less! That adds costs for you as you constantly are trying to find new, quality tenants. With that, you have to ensure you get your unit filled up with another quality (read: paying on time, no hassles) tenant as soon as possible. It’s one of the most solid of property investing tips, and that means not leaving the unit vacant for more than one month.
Checking for damage
You’ll have to go in and check after a tenant leaves, and before giving them their security back (in whole or in part due to damages done), make sure only normal wear and tear was done to your unit. You can expect this simple wear and tear on any tenant’s usage of your rental. You may have to do more than a simple cleaning after a tenant has been living there for a while. The unit may require a whole new paint job.
Hopefully, you won’t have to do any major repairs to the unit, and that your tenants kept it in proper shape. In that case, to keep your vacancy rate as low as possible, and to not lose money for being vacant for more than one month at a time, you’ll have to have your painting crew ready, as well as your cleaning crew on call and available in order to get in as quickly as possible after the tenant leaves. In this way, you’ll be able to begin showing it to prospective new tenants immediately upon cleaning up the unit.
Naturally, the sooner you can get the unit on the market to show, the sooner you can line up prospective tenants in to view it. One of the best property investing tips is that the better your place shows, the faster you’ll be able to get a quality new tenant under lease.
Time for small upgrades?
Also consider that (after a tenant has been in your unit for a very long time, and they decide to leave) whether it is a good idea to do a small bit of renovating to the unit. More than just a paint job, things like adding new appliances, or better yet, stainless steel appliances for a real spiffy image, will look great, and attract a higher-quality tenant. It will really spruce up the overall look of your unit. It will also mean you should be able to find a tenant faster, and be able to charge more rent for your refurbished, modern-looking unit. Also, tenants feel you are maintaining your overall building with more care when you upgrade appliances…it’s a wonderfully positive psychological effect on prospective tenants. Just figure in to your costs and time schedule, that with the addition of new appliances, you’ll most probably have to hire a plumber to install them as well – so you need to be ready for that expense, as well as prepare your crew to be ready to do the work in a very quick manner.
The quick turn-around
It’s all about timing…and the better you’re able to cut down the time between vacancy and new tenant, the better you will be able to maximize your rental profits. It’s one of the most basic property investing tips, So don’t leave your units open for more than a month after a tenant leaves. That’s the best way to ensure low vacancy rates overall on your building, as well as continuing to maximize your cash flow. Also remember that the better your curb appeal, not only on the outside of the building, but on the inside of units as well (the minute they walk through the door), the faster you’ll be able to rent out your unit…and to a better quality tenant.
photos courtesy of scenicreflctions.com, iresvegas.com, lowesforpros.com, regulatedtenants.com, thatgreenmaid.com