When you own an investment property, the name of the game is to increase your ROI and keep your cash flow coming in. Today, we’re talking about three ways to ensure you’re earning the most you can with your rental income.
Property Management Colorado Springs: Marketing
To market the property effectively, you need to have good, high quality pictures with your listing. Don’t rely on your cell phone to take these pictures, because it just doesn’t get the job done. You want the right lens to really make your photos stand out, so invest in a digital camera with a wide angle lens. Take pictures of all the rooms, and make sure those photos accurately reflect the colors and the size and the light. Take a nice front photo as well. You don’t want to Photoshop the picture so it’s unrecognizable when a tenant shows up, but make sure the house looks good.
Property Management Colorado Springs: Pricing
Price your property aggressively. If you’re in an area that the average rent is $1,500, and you’re at the top of that price range, you’ll have more days on the market. It’s really an owner’s market in Colorado Springs and Pueblo, but tenants are bargain shoppers like anyone else. This is especially true of high quality tenants with great income and solid credit. So make sure you price aggressively in order to increase your rental property ROI. Pricing it just under the market is a great way to rent it out immediately to outstanding tenants. If you price it at $1,450 in a $1,500 market, your property will be the first they look at. With increased demand, you’ll be able to choose the most financially qualified tenant. You’ll also have a longer term tenant because you won’t be chasing market trends. Reducing your days on the market is great for your ROI, because vacancies are expensive.
Property Management Colorado Springs: Pets
Be pet friendly. Lots of tenants in this area have pets, and sometimes they have multiple pets. Allowing pets will give you an advantage over the landlord who doesn’t allow pets. This may increase the risk of wear and tear to your property, but if you’re selecting high quality tenants and pricing your home well, you’ll offset that risk. You don’t have to accept every pet or an unlimited number of pets, but if you’re lenient with allowing animals, you can get more tenants interested in your property, and focus on important qualifications such as whether they will pay rent on time and follow the terms of the lease.
Remember – this isn’t the home you’re living in. This is an investment property, and it’s important to look at how you’ll earn the most money from it. These three things will help you get the best return on your property. If you have any questions, please contact us at Muldoon Associates.
