Currently, there are more than 40 million rental units in the US, with an average rental property having a return on investment (ROI) of about 9.5%, as reported by the US Department of Housing and Urban Development (HUD). The bad news is that a good number of American landlords are earning way less than the industry’s average income due to losses and expenses, such as mortgage payment, maintenance, unoccupied properties, property taxes, and management costs. The most common reason rental property owners aren’t getting a high ROI is that their rental properties are not consistently rented out. With this in mind, here are a few tips on how to keep good tenants happy, or to attract new tenants.
1) Enhance the Cosmetic Appearance of Your Property
Over time, your rental property will depreciate, experience wear and tear, and tenants will start to expect lower and lower rental payments. Worst case scenario, tenants may decide to relocate to other homes that look safer and more appealing. To increase your rental revenue and retain your tenants, it’s important to perform regular maintenance on the property, such as repainting the walls, landscaping regularly, and thorough cleanings in-between tenants.
2) Allow pets
According to the 2019 Pet-Friendly Housing Study, American landlords who allow pets in their rental units have a higher occupancy rate.
3) Pay a Utility
When a landlord or property owner covers a utility service, it can be very appealing to a potential tenant. Providing internet, cable, or covering water and sewage is very helpful to prospective residents on a tight budget.
4) Update Appliances
Making sure that your property has new and updated appliances, such as dishwashers, stoves and ovens, refrigerators, and laundry units are extremely beneficial to you and your tenants. Tenants are happier when their appliances work well, and efficient appliances save money on electricity, gas, and water bills. New appliances also allow you to charge a higher rent.
We hope that these tips help you maximize your revenue without overcharging your tenants. If you still need some extra help managing your Phoenix rental properties, whether it be maintenance or increasing your revenue, Real Property Management Evolve is here to help.