Every investor buys rental real estate in Roseville to make money. You want to earn high rents in the short term, and you want to maximize your ROI in the long term. There are several things that rental property owners like you can do to maximize the returns that are earned on investment properties.
Competitive pricing will keep the vacancy rate down and ensure consistent rental income. Professional Roseville property management will help prevent expensive legal mistakes.
The best way to boost your ROI, however, is with good tenants, maintenance, and ongoing improvements. You constantly want to be increasing the value of your property. You know that well-maintained homes always earn more, and you know they’re more attractive to good tenants.
Let’s take a look at some of the most important things you can do to increase the returns you can earn on your Roseville investment property. Here are our 5 best tips.
1. Attract and Retain Great Roseville Tenants
With well-qualified tenants in place, you can count on timely and consistent rental payments. You won’t have to worry about vacancy loss, threats to your property, or the potential for tenant-caused damage. When you rent your home out to well-qualified residents, you will also have someone helping you maintain your investment by taking care of it, keeping it clean, and notifying you immediately if something is wrong.
Good tenants lead to more money for property owners. There’s less risk of eviction, property damage, and lease violations.
To find the best possible tenants, you’ll need to have a rent-ready property and strategic marketing plans. Screen tenants carefully and in compliance with all fair housing laws. You want to know you’re renting to someone who is financially responsible, with an excellent record of positive rental experiences in the recent past.
Attracting good tenants is important, and retaining them is even more important. When tenants renew lease agreements year after year, you’re saving yourself from those expensive vacancy and turnover costs. This will go a long way towards increasing the returns you earn on your investment property.
Here are some of the best ways to retain your good Roseville tenants:
- Provide excellent and responsive communication.
- Be responsive when it comes to maintenance and repair issues.
- Remain flexible when necessary.
- Establish a set of consistent expectations at the beginning of the lease period.
- Keep rental increases reasonable when it’s time to renew.
Create and nurture positive working relationships with your tenants. This will make it easier to retain them and earn more on your investment.
2. Preventative Maintenance for Better ROI
Most rental property owners understand their obligations when it comes to emergency maintenance and routine repairs. Sometimes, preventative maintenance does not get the attention it deserves. However, by taking a preventative and proactive approach to your property and its systems and functions, you can save yourself a lot of money on unexpected repairs.
Preventative maintenance increases your earnings because it keeps you from spending money on recurring repairs. It also reduces the risk of surprise repairs and replacements.
For example, have your HVAC unit inspected and services annually. The $300 charge is a lot better for your budget than the $10,000 you’ll have to spend on a new furnace or air conditioning unit. A good HVAC tech can clean the system, look for potential issues, and let you know how much longer you can expect it to run efficiently.
Other preventative maintenance items that need to be part of your checklist include pest control, landscaping, having your plumbing checked for leaks and rust, and roofing. Take care of seasonal maintenance like gutter cleaning as well.
3. Cost-Effective Upgrades for Roseville Rental Property
Clean and well-maintained Roseville properties rarely need renovations. However, if you make a few minor and cost-effective updates and upgrades, you’ll increase its rental value and attract higher-quality tenants, which also leads to better ROI.
When your appliances begin to wear down and show their age, for example, don’t bother repairing them over and over again. Instead, consider replacing them. By installing energy-efficient, stainless steel models, you’ll give your home a modern, fresh look. You don’t even have to upgrade to stainless steel necessarily. But if you do, you’ll earn more in the long term and you’ll attract great tenants.
New showerheads in the showers and shiny, new faucets and hardware on all the sinks, drawers, and cabinets are great upgrades that will get attention, and they don’t cost a lot. Replacing old, worn carpet with laminate or tile is worth the investment. You’ll earn more in rent and you’ll attract tenants who are looking for low-maintenance floors. That’s more money for you.
4. Avoid Deferred Maintenance
Rental property inspections are important in documenting the condition of your home and ensuring your residents are following the terms of their lease agreements. They can also help you catch any deferred or unreported issues that need attention. You can’t show up for no reason in California, but you can schedule a maintenance walk-through as long as your tenants have plenty of notice and agree to have you in the property.
It’s important to conduct a thorough move-in inspection and move-out inspection to determine whether any work needs to be done on the home and if there was any damage during the tenancy.
When you have an experienced professional conducting these inspections, you’ll get a good idea of what kind of work may be needed down the road. It can help you budget for ongoing maintenance expenses and plan for larger repairs. This will earn you more money on your investment because you’ll be thinking about the long-term income and expenses versus the short-term, unexpected emergency costs.
5. Better Roseville Property Management Leads to Better ROI
It cannot be overstated. Professional Roseville property management leads to better returns on your investment. You’ll earn more with the careful and experienced attention your property receives from a good management partner. You’ll spend less on maintenance and vacancy, and you’ll be at less risk of making expensive legal mistakes.
There may be ways for you to increase what you earn on your specific property as well. We’d love to talk about it and make some recommendations. Please contact us at Action Properties.