The Cleveland rental market is generally good for investors; it allows you to earn favorable rental income in the short term and incredible long term returns. If you’re looking for ways to maximize the return on investment (ROI) that your rental property provides, we have some ideas.
Everyone has different investment goals, but whatever your plans for the property happen to be, there’s a lot to gain in adopting these tips and tricks as part of your leasing and management strategy.
Price the Home Right to Avoid Vacancy
Your home’s rental value has a huge impact on your ROI because it directly affects your vacancy and turnover rate. Consider this when you’re pricing your rental property. Many landlords will have a number in mind that reflects what they think their home is worth. But, the market drives the price. It doesn’t matter how much rent you need to cover your mortgage and expenses. Good tenants are only going to pay what the market demands.
Before you even think about pricing your home, take a look at the comparable properties in your area. Get some good data on what they have rented for and how long they were on the market. This will help you price your property effectively and competitively. The highest rental price does not always create the best ROI. Sometimes, a slightly lower price that attracts a great tenant quickly will earn you more. If you retain that tenant for the long term, it’s even better.
Make Maintenance a Priority
A well-maintained home will always rent for more. To increase returns, you want to protect and preserve the condition of your investment and provide a comfortable, safe, and attractive place for good tenants to live. Make sure there isn’t any deferred maintenance at the home. Before tenants move in, make sure everything works well. Check the locks on windows and doors, test each outlet, run the water in every faucet, flush the toilets, and turn on the appliances.
When maintenance is requested, don’t drag your feet. Respond immediately, even if it’s a routine repair that seems minor. There has never been a small repair issue that simply went away. They always get more complicated and more expensive. Save your money and increase your profits by taking care of maintenance preventatively and responding to your tenants when they let you know something needs to be fixed or replaced.
Work with Professional Cleveland Property Managers
The most important thing you can do to earn more money on your rental property is to work with a professional Cleveland property management team. Your property managers will help you earn more income, rent to better tenants, and be proactive when it comes to maintenance. Property managers ensure rent is collected on time, keep you in compliance with all state, federal, and local laws and regulations, and understand how to effectively inspect, maintain, market, and care for your rental home. We take care of tenant retention and tenant relationships. We have access to the best and most cost-effective vendors.
These are just a few of the ways you can keep your expenses down and your returns up. If you’d like to hear more, we’d love to talk to you. Contact us at RE/MAX Haven.