How to Maximize Your Rental Income with Property Management
Owning one or more rental properties can be very lucrative for investors and stable rental income is the key to any successful real estate venture. For those who have owned their property for a while, it may seem as if there is no real way to improve your profit margins, but this is not the case.
Find out how choosing the right property management firm can breathe new life into your rental properties and maximize your rental income.
Tip #1: Effective Tenant Screening
Increasing rental income starts with choosing the right tenants. Implementing comprehensive tenant screening processes facilitates predicting steady rental income. “Problem tenants” may help you occupy your rentals faster but can also end up costing you more money in the long run in the form of broken lease agreements, community disturbances, and property damage.
An effective property management team works to develop a comprehensive tenant screening procedure with a proven track record of weeding out potentially problematic tenants. Property management professionals conduct thorough background checks on potential tenants that include financial history, criminal records, and evictions. Additionally, property managers verify income to make sure the tenant can make consistent and timely rental payments. Taking these precautions before entering into a lease agreement helps avoid problems and will ultimately lead to stable rental income for years.
Tip #2: Reduce Tenant Turnover
High tenant turnover is also a major barrier to increased profits for property owners. Enlisting the help of a property management team can help reduce tenant churn by keeping vacancies to a minimum and going the extra mile to keep long-term tenants. The longer a rental property is empty, the more money the owner stands to lose, so keeping turnover low must be a top priority.
Rental income isn’t the only money drain that results from empty units. The advertising dollars spent to attract new tenants also increases once a unit is empty and if repairs or general upkeep need to be completed every few months, the costs can be tremendous. When seeking a property management firm, always discuss their methods for reducing tenant turnover.
Tip #3: Seek Professional Guidance
Though it may seem that the do-it-yourself approach is the best way to save money, it can cost you more over time.
For new property owners, the learning curve is steep, and money can be lost by experimenting. Professional property managers understand the ins and outs of real estate investment and use proven strategies to attract the right tenants, keep costs down, and maximize profitability. An experienced property management firm will work on effective rental pricing, targeted marketing, and will find ways to increase productivity – all of which save the property owner money. Additionally, property managers consider all potential risks so owners have a clear picture of what to expect.
Herman Boswell Property Management – The Right Choice
Deciding to invest in rental property is not easy but it can be very rewarding when you have the right team in place. If you are looking for professional property management services in Dallas, Texas, Herman Boswell Property Management offers unparalleled expertise and has worked with both residential and commercial property owners to develop effective property management strategies that maximize profits. If you own property in the Dallas areas, contact the experts at Herman Boswell Property Management for all your property management needs.