Your goal as a Tampa real estate investor is to increase the amount of income you earn on your rental property. To do this, you have to maximize the amount of rent you collect and the long-term returns you earn on your investment.
Some factors, unfortunately, are outside of your control. This is one of the risks that come with any investment. The market largely dictates how much your property is worth, and you never know how strong the market is going to be during any given month, quarter, or year. You can’t control the amount of competition you have and you’ll never be able to influence the local economic factors.
But, you can focus on those things that are within your control and take a few strategic steps to ensure you’re maximizing the amount you earn on your Tampa investment property.
Well-Maintained Homes Have Higher Rental Values
The condition of your home has a major impact on the amount you can charge in rent. The best Tampa tenants will be willing to pay more for a home that’s clean, functional, and attractive. Before you rent out the property, conduct a thorough inspection and take care of any repairs or replacements that are needed.
Once a tenant is in place, you need to immediately focus on tenant retention if you want to increase and maximize your rental income. Be responsive to their repair requests and maintenance needs. Even minor issues should be taken care of right away. Not only does it keep your tenants in place, it also ensures the condition and value of your property is protected.
Screen and Place Highly Qualified Tenants
If you don’t think your tenant selection has an impact on what you earn, think about what can happen with a bad tenant. You spend a lot of time chasing down late rent payments and you always run the risk of having to evict. That’s expensive. You could also be left with property damage that not only exceeds your security deposit amount but takes weeks or even months to repair.
A good tenant earns you more by paying rent on time, taking care of your home, and following the terms of your lease. That good tenant is also likely to stay for a longer term, saving you money on vacancy and turnover costs. When you place a tenant who can be counted on to perform, you earn more money in the short and long term.
Consider Investing in Modest Improvements and Upgrades
When you have a clean and well-maintained property, there’s no need to renovate it completely. Adding an extra bedroom or an indoor spa is rarely a good investment for your rental property. However, a few minor updates and upgrades will give your home a fresh, modern look and allow you to charge more in rent. If your appliances are aging, for example, don’t repair them. Instead, consider replacing them with energy-efficient, stainless steel models. Install new shower heads in the showers and put shiny, new faucets and hardware on all the sinks, drawers, and cabinets. Replacing old, worn carpet with laminate or tile is worth the investment. You’ll earn more in rent and you’ll attract tenants who are looking for low-maintenance floors.
A great way to increase your rental income and maximize your investment is to work with a professional Tampa property management company. When you have experts taking care of things like marketing, tenant screening, property pricing, and maintenance, you’ll save money on expenses and earn more ROI.
We’d love to tell you more about how we can help. Contact us at Real Property Management Leaders to talk about your Tampa property management needs.
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