How to Maximize Profit on Your Rental Property
Why are you a landlord? Well, one (main) reason is likely to make money. However, you can’t just own a rental property and hope to be successful. There’s plenty you can do wrong to lose out on money. If you own a rental property, you want to maximize your profit.
For this article, our team at Quest Real Estate wanted to share with some tips on how to maximize profit on your property. As a property management company, we know what it takes to attract tenants, keep tenants, keep up with the competition and manage a rental property. Over the years, we know what it takes – you got to give to get.
How Landlords Can Get the Most Out of Their Rental Property
- Keep your rental property in good condition. By updating the property or fixing issues, you are showing value to the place. You must give money to get money. Ways to keep up a property include paint jobs, changing air filters in HVAC units, replacing old flooring or rugs, fixing repairs fast, upgrading appliances, etc. if you keep the building in good condition, your tenants will likely follow in your lead. A property in good condition is also less likely to have dangers, which could lead to accidents and lawsuits.
- Update rents as needed. Research similar properties out there and keep your rental property competitive. Don’t ask for too much or too little. You don’t want to scare off tenants but you also need to pay the bills. If you start your rental in the summer months, you will be able to get more for it due to demand. You also can increase the rent when you increase the value of the property through upgrades.
- Have a written rental agreement. The rental agreement helps you avoid costly legal battles. Oral agreements can be risky. A written agreement explains rental price, dates, rules, tenant information, and more.
- Enforce rules. If a tenant is late with rent, follow through with a late fee charge. You need payments on time to pay the mortgage, repairs, utilities, etc.
- Screen tenants. A bad tenant can cost you. They can pay you late or not at all. When looking for good tenants, require a rental application, credit report, background check, and talk to previous landlords and employers.
- Make paying rent easy. These days, collecting rent via the web is the easiest way for tenants to pay.
- Have landlord insurance. This insurance will protect your property. You need this in addition to homeowner’s insurance.
- Keep good tenants – they pay rent on time and care for your property.
Every step, every action, every conversation you have can make or break your profit with your rental property. If you invest in your building and tenants, you can maximize your rental property.
Work with a Jacksonville Property Management Company
Managing and keeping up with a rental property can be a lot of work – especially if you own multiple properties, live far away, or have another job – this is where a property management company comes in. Property management companies specialize in handling the day-to-day tasks of running a rental property for you.
As a Jacksonville property management company, we are effective, knowledgeable, and experienced at managing a building – we know how to maximize profits. Our experts have more than 20 years of combined experience in managing properties. We collect rents, market properties, handle tenant disputes, handle maintenance issues, and more.
We have an intimate knowledge of the local Jacksonville rental and sales markets and a commitment to making owners as successful as possible. We want you to get the most out of your rental property.