The Pew Research Center found more than 20 million rental properties in the U.S. with nearly 50 million individual units. That's an unbelievably profitable industry when you calculate the rent prices. It's no surprise that more people are moving toward the landlord space.
Make no mistake, however, being a successful landlord takes work, especially if you want to grow your rental portfolio beyond one property. Managing one property or unit is a great way to learn how much work is involved.
So, what are your next steps?
Follow along to find a property management company, rental analysis, marketing, and more services.
Do You Really Need a Property Management Company?
Let's talk about expenses.
As a landlord, you want to cut costs where (and when) you can, but you don't want to do it at the expense of your portfolio. Investing in a property manager is an expense that's worth the cost.
Property managers perform the following services:
- Property upkeep, repairs, and upgrades (maintenance)
- Real estate marketing
- Tenant procurement
- Rent collection
- Rental analysis
- Financial accounting
Let's dig even further into the above services.
Maintenance and Rental Analysis
Property maintenance is a must.
A good maintenance strategy starts with an inspection. This service will find areas (and appliances) in need of repair, including potential repairs. It's also a good time to install any upgrades, like new countertops and HVAC systems.
Property managers also perform ground maintenance to upkeep curb appeal.
This includes:
- Hiring gardeners and landscapes (lawn care)
- Tree removal
- New grass or sod installation
- Porch remodeling
- Siding repair and replacement
- Exterior painting
You need stellar curb appeal to produce eye-catching photos for real estate listings. If you're appealing to a certain tenant demographic, like families, new backyard landscaping is another big draw.
Parking is such an important amenity, as well. Think about installing a driveway on your property or purchasing a house in an area with plenty of parking. These are points you need to think about when scouting for properties.
You should also consider a rental analysis to understand what your property is worth; this will help you price your units accordingly.
Find the Right Tenants
An excellent tenant procurement strategy is critical for increasing ROI numbers. The ROI (return on investment) on a responsible long-term tenant cannot be stated enough. This process starts with hiring a property management company that takes screening seriously.
Don't rely on online services that claim to run background checks. These websites often provide inaccurate information like incorrect addresses, birthdates, and occupations. Sunnyside, for example, conducts tenant screening using a host of tools including national databases, rental history tracking, credit reporting, and interviews.
Remember to incorporate a lease renewal strategy into your business model. This strategy should include incentives (like upgrades) that retain your best tenants.
Make More Money as a Landlord
Don't simply own properties. Invest in your properties to start making real money from your portfolio. Understand the importance of maintenance, rental analysis, tenant procurement, and more.
We want to be your property management partner and help your portfolio generate more income. Call us today to learn more!
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