When you invest in Grand Rapids rental property, you want to maximize your ROI and ensure a profitable investment experience.
There are several ways to do this, and much of what you earn will depend on how you financed the acquisition.
When you’re looking for ways to increase your return on investment, consider these professional Grand Rapids property management tips.
Limit Vacancy and Turnover
Earning any money on your rental property requires having a tenant in place who pays rent. With a reliable resident, you can count on rising ROI because the rental income is arriving consistently every month. They’re also helping you maintain the property and following the terms of the lease agreement, which limits liability and the risk of property damage.
Make sure you’re not losing money to long vacancy periods. Price your home competitively, in accordance with the local market. Create terrific curb appeal and make sure the property is in excellent, move-in ready condition when you show the home. Focus on a marketing strategy and an online advertising campaign that will get your investment home rented right away.
Tenant retention is also important. When your tenant renews their lease agreement and stays in place year after year, you’re saving money on maintenance, marketing, and leasing. You don’t have to pay for utilities during the turnover period or worry about security. Tenant retention is one of the best ways to increase your ROI.
Focus on Preventative Maintenance
Deferred and unreported maintenance will cost you money. If you want to increase your earnings, make sure you’re responsive when it comes to routine maintenance. Pay attention to preventative maintenance as well. Here’s why it matters:
- You protect the condition of your investment property and increase its value.
- You keep your tenants happy and more likely to renew their lease agreement.
- You prevent emergency repairs, which are always more costly than preventative maintenance.
If your investment goal is to increase ROI, make sure preventative maintenance is a priority. Get to know some great vendors or work with a Grand Rapids property management company so you don’t even have to think about it.
Get to Know the Grand Rapids Rental Market
Your rental properties won’t perform well if you don’t understand the market. Pricing your property too high, for example, will result in longer vacancies. But, if you know the market well, you’ll understand the rental values for homes similar to yours, and you’ll arrive at an accurate price. You need to know the trends and the neighborhoods. You also need to understand all state, local, and federal laws. A lawsuit or a legal dispute is a great way to damage your ROI.
The best way to increase your ROI in the current Grand Rapids market is to partner with local property managers. We can take some steps to make sure your property is earning as much as it can, leading to higher ROI and better investment experiences.
Contact us at Short South Management and Development to learn more.