Six Tips to Maximize Rental Income
With national rental vacancies at almost half the 2010 rate, investors and landlords should be in a great position now to maximize the value of their investments. Rental vacancies across America currently stand at 5.6%, compared with 10.6% in 2010, and experts suggest the steep increase we're now seeing in rent is a factor driving America's inflation rate.
With this information, there's rarely been a better time to invest. Allowing you to reap the benefits of strong rental incomes and, crucially, adding to the stock of available rental properties.
As an experienced real estate company, we’ve worked with many investor clients and have found the amount you can charge for rent is strongly related to the state of repair of the house or apartment. Secondly, location is a major influence on rental income. However, if you're offering a substandard property, you'll not attract the best tenants or maximize your income.
Below, we’ve listed 6 key items to consider before potential tenants move in.
1. Keep it Clean
Properties in unkempt conditions are an immediate turn-off. Potential tenants will watch for signs of a lack of maintenance, such as poor lighting, cracked paths, and shabby décor in common areas.
2. Personality Counts
If you're taking prospective tenants through your property, be aware that you're auditioning as their landlord. Tenants want to have confidence that you'll respond quickly to issues and be reasonable when they raise problems.
3. Background Checks
Experienced tenants will often do a background check on the property. They can find information on code violations or judgments against the owner, such as unlawful evictions. Paying bills on time and following ethical and legal best practices will give you a clean slate.
4. Stains on Reputation
One of the tell-tale signs of a poor-quality apartment is water stains, which could be caused by a leaking roof, broken pipe, or poor plumbing. Cracks and warped drywall are other signs. Check over plumbing and drywall carefully between tenants and as part of your regular maintanence.
5. Nose for Trouble
How the property smells is another influential factor in a tenant's assessment. Unpleasant aromas of gas, cigarette smoke and rotten eggs (caused by stagnant tap water) are the most common problems with vacant properties. If carpets have recently been cleaned make sure they dry completely and no lingering scent remains.
6. Broken Appliances
If you're renting your property with a dishwasher or washing machine, tenants will want to be satisfied they're in working order. Arrange for them to be serviced to minimize the risk of breakdowns once tenants move in. Checking HVAC systems, hot water heaters and other major appliances on a regular schedule.
Credit: ActivePipe