Most investors buy and rent out property with the intention of making money. Hopefully, that’s why you’re in the Bay area real estate market.
Cash flow takes time to earn in this area, but increasing your ROI is something you can do from the moment you begin leasing a rental home. Today, we’re sharing a few ideas on how to get the best return on your real estate investment.
Price your Rental Property Correctly
Vacancies will hurt the return you earn on your investment property, and it will be nearly impossible to recover the money you lose. One of the biggest mistakes we see investors make is to price their rental property too high. No one wants to underprice it and lose money right away. With the new rent control laws in place, you want to make sure you’re choosing the right price so you don’t fall below market and then struggle to recover.
However, overpricing your property can be just as damaging and even more expensive. Today’s tenants are pretty savvy, and they understand the rental values in your neighborhood. Make sure your home is priced competitively and that your rental value is aligned with what similar homes in your area are renting for. A well-priced property will earn more ROI.
Marketing and Curb Appeal Count
Earn more with high quality tenants. Good tenants will help your ROI by paying rent on time and taking good care of your home. To attract these tenants, you need a terrific marketing plan. You also want to offer an attractive and comfortable home for rent.
Take clear, appealing marketing photos before you list your rental home. Pay attention to lighting and angles, and include tags and descriptions that will get your home the attention you want on the most popular rental websites.
Ensure the property is ready for the rental market. Curb appeal is important because it’s your prospective tenant’s first impression of the home. The exterior should be clean and well-landscaped. Inside, consider making a few inexpensive upgrades and updates, which will drive your rental value up. A fresh coat of paint or modern lighting can make a big difference in your ROI.
Respond to Preventative Maintenance Issues
Maintenance is critical to increasing your ROI. While maintenance expenses are tempting to avoid, smart investors know that taking care of small repair issues right away will save money and time by preventing larger or emergency disasters. Be responsive with repair requests. Not only does it show your tenants that you care (thereby increasing tenant retention rates), it also protects the condition of your home.
Preventative maintenance is necessary. Have your HVAC system serviced once a year, get your gutters cleaned out, and have someone take care of cleaning and landscaping on an annual basis.
Work with Professional Bay Area Property Managers
One of the most reliable ways to increase your ROI is by working with a professional management company. A good Bay area property manager will save you money on maintenance, help you find and keep great tenants, and ensure you’re not making any expensive legal mistakes. Your property management company has the tools and resources to lease and manage your home in more profitable ways.
We’d love to tell you more. Please contact us at California Pacific Realty.