Raising the rent annually to bring in more money will backfire—tenants won’t endure it year after year, and your rental property may become an outlier in the neighborhood. It’s hard to attract new tenants to the most expensive house on the block. Try these other easy ways to maximize your rental property bottom line.
Retain Good Tenants
Reliable tenants who pay on time, maintain their homes well, and stick around for years will ensure your cash flow. Be the best landlord they’ve ever had. Ensure quick response to work requests, recognize holidays and birthdays, sent a personal thank-you note when they renew, and most of all, be available for communication. Tenants appreciate a property owner who is accessible.
Among rental property management companies in Atlanta, Georgia, Excalibur Homes has experience providing superior service to tenants. This support helps keep them renewing and happy in their homes.
Have a plan and a schedule to ensure vacancies fill quickly. Every day a property is unoccupied is a day you’re losing money. Set a goal for turnaround time to include the necessary painting, cleaning, or repairs; time to market the property’s availability; and time for screening tenants. Set aside a fund to cover cashflow during vacancies.
You can be gentle, but you must be firm in collecting late rent and associated fees. Letting it slide will get you a reputation as a softie, and tenants will take advantage. Of course, there are times of hardship when you may be open to negotiating with good, long-term tenants, but don’t allow tenants with bad financial habits to perpetuate them to the detriment of your bottom line.
Maintain the Home
Preventative maintenance saves money over occasional but costly repairs. Address maintenance concerns while problems are small so that they won’t turn into big-ticket issues. Repair leaks, upgrade fixtures, change filters, maintain HVAC systems, re-caulk windows, and add weatherstripping around doors. A well-maintained home will be more energy-efficient, reducing utility costs. If your tenants pay for utilities, they’ll be grateful, and if you pay, you’ll keep more of the rent. Adding energy-efficient appliances is another form of maintenance that can save you money.
Other ways to maximize your rental property bottom line might include meeting with a tax advisor to ensure you are taking advantage of all possible deductions or deferrals. You can also keep an eye on the market to determine when it’s time to sell or refinance under better terms.