One of the first types of investments investors gravitate toward is real estate.
Like any other investment, you must manage your risk. One of the most popular income models with the lowest risk (but the highest reward) is the rental market.
Buying property in an area with high rental activity generates income faster. A consistent income stream will cover necessary expenses; the resulting amount after expenses are paid is your profit.
Here are a few ways to generate even more income from rental leasing.
Work With a Property Management Company
Even one rental property requires several services to be successful. Property maintenance, rent collection, tenant screening, and marketing are a few necessities to consider.
Instead of outsourcing these tasks to several companies, look for a property management company that offers a full-service option like Kerr Properties Inc.
This move will save you more money. Experienced property managers know how to invest your capital in the right strategies. For example, you don't have to worry about wasting money on marketing strategies that don't get results.
Get to know a property management company by booking a consultation. Learn more about their philosophy. Don't hesitate to ask them how they would boost your rental leasing income.
Targeted Marketing Matters
You can't fill vacancies quickly without a successful marketing plan.
A property management company that offers marketing services will start with necessary upgrades and repairs. This step also entails curb appeal. Curb appeal is an umbrella term for everything from curbside cleanliness to landscaping.
You need stellar curb appeal to help attract the right prospective tenants through real estate photos. Property managers include these photos in listings, social media posts, and email newsletters.
You'll also need necessary upgrades for interior photos, like window replacements, new flooring, and wall treatments. Don't forget kitchen and bathroom upgrades as these features are the most popular with renters.
Next, a marketing expert will segment demographics so that your rental listings get to the right segment. They may do this through SEO keyword targeting or email list segmentation.
Your rental will also be appraised so that you can price your property accordingly. Surrounding property values and appreciation trends will also be considered in your appraisal.
Rental Leasing Renewal Strategies
Lease renewals are also a part of the marketing process. Retaining quality tenants is just as important as attracting them. You'll quickly notice how low turnover rates make a difference in profits.
This strategy starts with the right lease contract. A property manager will work with a lawyer to customize contracts for your best tenants.
Feedback helps here. Ask your best tenants what they could improve about their living experience. They may mention new kitchen upgrades like granite countertops, as an example.
Kitchen and bathroom remodeling is an incentive to get tenants to stay. You could also discount their yearly pet deposits or even discount their first month of rent.
Boost Your Profits and Grow Your Portfolio
Don't wait to implement a profit strategy. Start thinking about these points before buying your first property. Talk to a property manager about the rental leasing services you need to thrive.
Kerr Properties Inc. is a property management leader in Oregon. Let us help you succeed. Call us today!
