- Vacancy is one of the biggest costs landlords face.
- Paying for utilities, though well intentioned, loses you money.
- Periodic, modest rent increases are expected.
If you own rental property, it's probably safe to say your number one priority is maximizing the income generated from that property or portfolio. Here at Grace Property Management we focus on four impactful ways to make your property or rental portfolio more lucrative without overcharging your tenant.
- Vacancy: The largest killer of optimized rental income is a vacant property. Maximizing your rental income starts with a shift in your perspective to view vacancy as a per-day cost. The key to maximized rental income is avoiding vacancy and speeding up the make-ready process so you can turn properties quickly and limit your vacancy per-day cost.
For example: Imagine you have a property that is rented at $1,800 a month. That property generates $60 daily in rental income, which translates to a minimum of $60 daily loss. (This number also doesn’t take into account additional costs like utilities and maintenance for vacant properties.)
- Maintenance: When you receive a maintenance request from your tenant, it is imperative that you provide fast, high-quality repairs. Many studies have found that poor quality maintenance is the number one reason good tenants choose not to renew their lease. By delivering quality maintenance to your tenant during their occupancy, they will be much more inclined to renew.
- Utilities: Don’t pay for utilities. Often landlords have good intention in paying for utilities, but it is an unnecessary cost that can be easily avoided. Optimize your rental income and have your tenants cover the property's utility costs.
- Rent Increase: Don’t be afraid to increase your rent at the lease renewal. Though you don't want to lose a tenant over rent increase, your own expenses increase every year. You are justified in increasing rent to cover these expenses. That said, don’t overdo it. A modest increase is appropriate.
If you have additional questions about optimizing your rental portfolio or any other property management need you may have, our team is happy to serve as a resource for you. Give us a call! 303-255-1990