How to Maximize Your Rental Property's Return on Investment

In this post we explore how to get a good return on the investments made in your rental property, and how to attract better quality tenants.

Cleaning Services: People are getting pretty busy this day and age with their careers and family life. The amount of responsibility we have makes it difficult to even get the dishes done at the end of the day. One way to cater to this universal need to have a clean home in a busy world is to offer your tenants cleaning services. You can choose the number of times per year the unit gets cleaned (quarterly, monthly, etc.) and by offering this, you can ask for higher rent each month, which will pay for the cleaning services and then some. The cleaning service can also give you updates on major issues that may be going on in the unit, like leaks, major damage, or a need for general maintenance.  Understanding the tenant market you are going after is important in considering this option.  

Allowing your tenants some choices in design: We all want a tenant who treats your property as if it is their own. Most landlords have small renovations they complete when a tenant moves out, like replacing carpeting or painting the walls. Why not let your next tenant choose what they want? Provide them with three carpet swatches you are okay paying for, and let them choose. Just the same, offer three paint swatches you won't mind seeing on the walls, and let them chose the one that works best with what they have. My suggestion is to have a cool neutral, a warm neutral, and another type of neutral. Make sure to stick with neutrals though. You do have to consider re-renting in the future. By doing this the tenant will want to take better care of the unit since they got to chose how it was decorated, and they are also much more likely to stay long-term.

Have it in show condition when it you have walk-through's: Take some extra time and have a close look at how your unit is portrayed. If you want a little more money for it, you need it to be as perfect as possible. Replace you burnt out light bulbs, fix leaky faucets, make the place clean and spotless, and patch and smooth out drywall if needed. Don't forget to tend to the outside as well. Remember the tenants will have to walk from where they park to their doorstep, so everything they see is being taken into consideration on the way in. Have your shrubs and grass trimmed, gardens mulched and weeded, and maybe even have some planters near the door to appear more welcoming. Removed garbage from nearby as well. The stench of garbage on a hot summer day is not very welcoming. You want your unit to say: "I am the best landlord ever. This unit is worth it!"

Maintenance: You now have your dream tenant because you did all of the above for them and they feel like they will be taken care of. Your job as landlord is to keep it all going. If you don't they will think it was all just a clever ruse to get them to move in and pay more rent, and they will get begin looking elsewhere if these aren't maintained. Just like any relationship, it takes maintenance and care. Let your extras be a constant reminder to your tenants about how great you are, and why they should think twice before leaving.

 

Tom McEvoy

Tom McEvoy

Sales Representative
CENTURY 21 Lanthorn Real Estate Ltd., Brokerage*
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