As a real estate investor, you know that what you earn largely depends on the strength and performance of the Idaho Falls rental market. The amount of rent you collect and the tenants you attract will really be influenced by a number of factors outside of your control.
However, there are plenty of things you can do to increase what you earn and decrease what you spend, leading to better results and higher profits with your property and your entire portfolio.
Here are some of the things you can do to maximize the ROI you’re earning on your Idaho Falls investment property.
Know the Idaho Falls Rental Market
To maximize your returns and increase your rental value, it’s important to understand the Idaho Falls rental market so you can accurately and competitively price your rental home. You need to know your competition and understand the demands of your tenants.
Get to know the properties that are renting and how much they’re renting for. Look into the vacancy periods and see which ones are moving faster. Avoiding vacancy is one of the best ways to increase what you earn.
Make sure your Idaho Falls rental property is meeting and exceeding what other properties can provide. If you’re not already allowing pets, consider accepting dogs and cats. You can charge a pet fee or monthly pet rent, which is an easy way to increase earnings and protect yourself from liability.
Think about amenities as well. If your competing buildings are providing pools, game rooms, community centers, and tennis, you might think about what you can provide. There’s no need to do a complete renovation, but even installing a basketball court can help. Pay attention to landscaping and curb appeal. Power washing and painting the exterior of the building can make a difference.
Tenant Retention Improves ROI
Some of your largest expenses can be found in vacancy and turnover costs. It’s more than not earning rent. During a vacancy, you’re also paying for utilities, rental property maintenance, cleaning, security, and general upkeep. You don’t have anyone in the property who can let you know that a sink is leaking or the heat isn’t working.
Hold onto your good tenants. You’ll save a lot of money and you’ll avoid a lot of stress.
Invest in Cost Effective Improvements and Updates
It’s also important to keep your Idaho Falls rental property updated and modern. Take a look at the parking area and ensure there is enough parking for your tenants and for visitors. Common areas need to be constantly evaluated. If there isn’t laundry in the units, you’ll need to make sure your laundry area is clean, spacious, and reliable in terms of functioning machines.
Make cost effective updates that will help you charge more rent. For example, a washer and dryer in each unit will raise your rental value. Energy-efficient appliances are also good at attracting better tenants and increasing rents. Embrace technology. If you include free internet access or offer high-speed smart-home capabilities, you’ll be able to charge more.
These are some of the things that will increase what you’re able to earn and decrease what you’re losing every month in vacancy and maintenance costs as well as missed opportunities in the local rental market.
We can help you have a better and more profitable rental experience. If you’d like to hear more about our Idaho Falls property management services, please contact us at Jacob Grant Property Management.