To get the best return on investment with your income property, you need to maximize your rental rates and your rental income. Today, we’re talking about how to do that.
Maximizing Rental Property Income: Setting the Right RatesThe most important thing you can do is to set the rent price correctly from the very beginning. If you price it too low, you risk leaving money on the table and losing revenue. If you price it too high, you’ll risk an extended vacancy time. We recommend checking sites like Craigslist, Trulia, and Zillow to get an idea of what your property should rent for. Another good way is to use sites like RentRange.com and RentoMeter.com. These platforms are great because they summarize the data for you and make it easy to analyze.
Rental Property Investment: Minimize Vacancy TimeTo minimize your vacancy time, you should be seeking renewals well in advance of the lease ending date. Send lease renewal notices at least 60 days in advance of the end date. Give your tenants a firm deadline. If you don’t hear from your tenants, follow up with a phone call so you can be sure they received the notice. If they renew at their current rate or a rate that’s a little higher, you’re ahead of the game.
If they decide to leave, you still have plenty of time to find new tenants. This is an opportunity to maximize return on investment by getting the maximum rental rate. You have time to research, set your price at the top of the market, and see if tenants will bite. You can walk your price down a little if you need to, and you’ll find the place where you get the most for your rental. Planning for those lease renewal periods is one of the best investment strategies you can follow.
Owning Rental Property: Keeping it Rent ReadyMake sure your property is rent ready. Like homes for sale, those in the best shape command the best prices. A better property will fetch higher rents. Have the carpets professionally cleaned, make sure there is fresh paint on the walls, and take care of small things like replacing toilet seats before they get worn. This will keep your house looking great when prospective tenants see it for the first time.
These are just a few things you can do to increase your rental rates and ultimately your rental revenue. If you have any questions about real estate investing or Bellingham property management, please contact us at Access Real Estate Services. We have been serving Bellingham and the surrounding areas since 2010.