More rentals are sitting empty as the US rental vacancy rate reaches 6.4%. Without proper real estate asset management, your rentals could sit empty for months. You could lose thousands in potential earnings.
Before that happens, read on to apply these best practices. With these tips, you can maximize your profitability. Improve your ROI with these real estate asset management strategies.
Screen Applicants
Failing to thoroughly screen rental applicants could lead you to choose stressful renters. Already, 15% of American households (six million) are behind on rent. Choosing one of these renters can affect your profitability.
Instead, consider each applicant's:
- Rental history
- Eviction history
- Criminal background
- Credit score
- Employment records
Try to speak with some of their previous landlords. Avoid renters who have caused noise complaints or fought with other tenants.
Screening tenants will ensure you choose reliable tenants you want to retain. You can increase your occupancy rate and avoid stressful situations.
Consider outsourcing this process to a property management company. They have access to thorough reports and state-of-the-art technology. Their services can save you time screening and selecting renters.
Complete Rental Property Maintenance
If your Cleveland rental property starts falling apart, renters may decide to move out. Your vacancy rate will increase. Some renters may sue if you fail to provide a habitable living environment.
Before that happens, create an emergency fund. Fulfill rental property maintenance requests as quickly as possible.
Have a list of reliable Cleveland contractors prepared. You'll know who to call when there's an emergency.
Offer Rental Property Upgrades
Improving your Cleveland rental properties can make them more desirable. Your tenant pool will increase, causing your occupancy rate to rise.
Choose rental property upgrades that improve the property value. For example:
- Energy efficient windows
- A fresh coat of paint
- New hardwood floors
- New kitchen appliances
- Smart home technology
Aim for Tenant Retention
Start building strong tenant-landlord relations the moment renters sign their lease. Keeping renters happy can increase their satisfaction rates. These renters will want to stay, increase your occupancy rate and ROI.
As part of your tenant retention strategy, remain willing to negotiate. Most renters won't stay if you increase the rental rate. Instead, try to find a compromise.
Reduce Rental Property Expenses
Reduce your expenses to improve your ROI.
Screening tenants can help you avoid renters who cause property damage. Perform move-in and move-out inspections to complete maintenance promptly. Maintaining your investment property can help you avoid future repairs and expenses.
Hire a Property Manager
Streamline operations by hiring an experienced property manager. Rely on their expertise to apply smarter real estate asset management strategies.
They can help you complete a rental analysis to set competitive rental rates. You'll have an easier time attracting renters and increasing occupancy.
Request Real Estate Asset Management
Property real estate asset management is an ongoing process. Instead of applying these tips alone, work with a property management company. Leverage their proven strategies to get ahead of other Cleveland landlords.
Remax Haven Realty is your full-service Cleveland property manager. We have 11 years of experience managing over 1,700 homes.
Rely on our high-quality service and personal touch. Contact us today to request our services.
