How to Maximize Rental Property Income with Your Renton Investment

If you’re renting out a Renton, Maple Valley or Enumclaw property, you’re probably hoping to earn some money on it. Your cash flow is important to your bottom line and your long term return on investment. If you want to earn more on your investment property, you need to increase your rental income and keep your costs under control. It’s simple math. But, getting there isn’t always so easy. Today, we’re sharing some tips.

Pricing Your Property Correctly

Cash flow depends on the money you earn and the money you spend. When you’re trying to increase the amount you’re bringing in every month, you need to know how the market is performing so you can price your property accordingly. The right rental value is critical in maximizing what you earn on the investment. You don’t want to charge too little: that’s leaving money on the table. Not charging enough rent will hurt your cash flow now and it will also set you back when you’re trying to raise rent because it will take a dramatic increase to get your rent price up to market value.

Overpricing your home can be just as damaging. If you ask too much, the property will be vacant for longer. To maximize what you’re earning, conduct regular rental analyses so you understand what the competition is doing and how your property fits in.

Attract and Retain Outstanding Tenants

Increase revenue by pricing your property correctly and attracting and retaining excellent tenants. When you have a renter who pays on time and takes care of your home, you’ll have an easier time driving up cash flow. Make some small but smart improvements and updates to your property as well. The best tenants will pay the highest prices for well-maintained homes. When you make improvements to drive up your rental price, you’re also setting yourself up to increase your sales price when you’re ready to sell.

Make sure you’re responsive to maintenance. You don’t want to chase away great tenants because you didn’t fix something that they reported two or three times. Show your tenants that you value them and appreciate their on-time rental payments and their respect for the lease agreement. Retaining good tenants will earn you more money.

Decreasing Rental Property Expenses

Once you have more rent coming in, you can continue to increase your cash flow and your ROI by decreasing your expenses. Pay attention to preventative maintenance so you aren’t surprised by large, expensive repairs. Enforce your lease and rent collection policy consistently so you don’t waste time and money dealing with late payments and uncooperative tenants. Automate as many systems as you can so you aren’t wasting money. If you allow pets, make sure you collect a pet fee or pet rent. This will defer any extra cleaning costs you have to do when the tenants move out.

Property Management Helps You Earn More

Consider what you pay vendors and contractors for maintenance. Your price is likely a lot higher than what a good Renton property management company will pay. Why? We have an economy of scale working for us. We provide more work to vendors, so they offer the best prices and most competitive rates. That saves our owners on routine and emergency maintenance all the time.

Most management companies also invest heavily in technology, giving us the tools and resources that self-managing landlords simply cannot access. We can do all of our marketing, screening, bookkeeping, and documentation electronically. Tenants pay us rent online and we pay our owners through direct bank deposits. Everything is more efficient, and that keeps costs down and profits up.

An image of three piles of coins with different denomination kept in side of calculatorWe’d be happy to help you maximize what you’re earning on your rental properties in Renton and surrounding areas. Contact our team at People’s Real Estate & Property Management.