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5 Ways to Maximize your Profit With your Rental Property

I have compiled a short but informative list of ways to maximize your profit on your rental property. This is based on my decade of experience managing, renting, and owning residential rental properties.

  1. Hire a property manager – There are too many things that you need to know and connections you need to have in order to properly manage your property. A property manager can get work done quicker and cheaper than you can. A property manager is knowledgeable in landlord tenant law, state and federal laws affecting Colorado Springs property management and habitability laws. A property manager will not only save you money and time but their services can literally pay for themselves!
  2. Keep a nice rental property – Squeezing every last penny out of a property, skimping on maintenance, etc are all ways to create long term profit issues. If you stay up on anything that goes wrong in the home as it happens you will have fewer big ticket items to replace at the same time, your rents will remain at the higher end of your market area, and you will create a more optimum rental experience.
  3. Screen Tenants – This is VERY important! You should never discriminate against people for their familial status, gender, sex, religion, disability, age, color, ethnicity! You can however establish a realistic list of qualifications and apply them equally to everyone interested in your property. Your goal should be to find a responsible tenant who understands your expectations as the landlord. Without proper screening you could see your profits diminish very quickly!
    Establish rents that are in line with your market area – Your goal should not be to ask for the highest rent possible and hold out for someone to pay it. You will alienate more people than you will attract and your days on market will be negatively impacted. Don’t only look at available home pricing in your area, call around and see what homes have actually rented for. Much like selling a home, the listing price and purchase price can be dramatically different.
    Join a Landlord Group or Association – Organizations such as the Landlord Protection Agency can be very beneficial when it comes to being a landlord. Their memberships are inexpensive and they provide lease docs, legal advice, and many other invaluable services.

I hope this helps you in your landlording adventures. Feel free to contact me or comment here! As usual, thanks for reading and I’ll be posting again soon!

Posted by: muldonassociates on March 19, 2013
Posted in: Uncategorized