Property ownership is like any other business in the sense that ROI is what keeps the business moving forward. There is a simple equation for increasing rental property income and having a greater ROI, and today we’re talking about how to do that.
Increasing RentA simple yet effective way to increase your income is to raise rents on a regular basis while keeping it as close to market rent as possible. It is important to factor in city regulations which control how frequently and by how much you can increase rents, depending on the city the property is located.
Shorten Vacancy PeriodsBy shortening the vacancy period for your rental property, you’ll find you have more income. When you receive a notice to vacate from your tenants, don’t wait for them to leave before you advertise. Your marketing should begin as soon as the notice is given. Consider listing the available move in date for new tenants about a week after your current tenant is scheduled to move out. This will ensure you can still get some repair work done on the property if necessary. This will minimizes the period that your rental stays vacant and in return create more income.
Watch Your Water BillMost landlords of multi-unit buildings pay the water bill. You can reduce the water usage by installing water conserving plumbing fixtures, which will significantly decrease the water bill. It’s also crucial to be proactive and have a plumber check for leaks and running toilets on a regular basis to prevent unnecessary misuse of water. Look for Tax Breaks Make sure you’re taking advantage of all potential tax breaks. Track and claim all allowable expenses like maintenance and repair costs to reduce taxable profits and ultimately bring down your tax bill. Speak to your CPA for more information on the tax benefits associated with your rental property investment.
If you’d like more details on how to increase rental investment income or other topics related to income property, please contact Glendale Property Management.