If your real estate asset isn’t performing the way you’d like it to, selling isn’t your only option. There may be a few simple fixes that can get your Rexburg rental property into a more profitable cash flow category.
At Jacob Grant, we work with smart investors who understand the nuances of the current market and what the coming trends mean for their portfolios. We’d like to share some of our thoughts on how to turn a poorly performing property into an asset that better serves your investment goals.
Consider the Condition of Your Units and Building
One of the fastest ways to improve your rental value and increase what you earn is to check the condition of your property. If it’s deteriorating or looking old and worn, you’ll want to make some updates. Improving the building itself and the individual units that you’re renting out will result in higher rents, better quality tenants, and an improved investment experience.
Check the curb appeal. Does it look like an inviting place to live? Is there adequate exterior lighting and enough parking? Are the elevators always breaking down?
You need to invest in some upgrades when appliances begin to cause problems, HVAC systems are routinely failing, and the paint begins chipping off the walls.
Make your property a desirable place to live. This will get the attention of tenants who are willing to pay for the best homes. You’ll see results pretty quickly.
Increasing Cash Flow through Responsive Maintenance
Another great way to earn more cash flow is by paying attention to maintenance and using high-quality, cost-effective vendors and contractors when work is needed at your property.
A great property maintenance team will make a huge difference in what you spend and what you earn. Look for preferred vendors who will offer discount pricing in exchange for a steady volume of work. You’ll benefit from that relationship, and you’ll keep costs down.
Even more important is your emergency response team. You’ll need a 24/7 maintenance hotline that tenants can call when something is wrong. Tenants want to be heard, especially when something isn’t right. If you’re willing to answer those calls and ask the right questions to diagnose the problem, your responsiveness will be rewarded with higher profits.
Retaining Rexburg Tenants and Avoiding Vacancy
That responsiveness to maintenance issue also relates to vacancy and turnover. If tenants don’t feel like you are responding to maintenance needs in a timely manner, they’re going to leave. Make sure you have a strategy in place for keeping your good tenants and encouraging lease renewals. This will increase your cash flow and reduce your turnover expenses.
If you lose your renters every year, it’s going to cost money getting your property back into rent-ready condition. Avoiding vacancy is an important part of your cash flow.
When you do have a tenant who moves out, act quickly to ensure the vacancy period is as short as possible. Within 72 hours, you want to get inside to clean out the house and make any necessary repairs before putting the property back on the market.
Your cash flow and your investment experience really comes down to Rexburg property management. If you need some help earning what you hoped to earn on a particular property or the majority of your portfolio, contact us at Jacob Grant Property Management. We can help you earn more and spend less.