How can you increase the return on your Albuquerque investment property?
This is the goal of nearly every real estate investor. The good news is – you don’t have to overthink it. There are some easy ways to raise your rental value and make your property more profitable now and in the long term.
As a company providing property management services in Albuquerque, we enjoy working with property owners to earn more and spend less on their investments.
The best recommendations we come up with for you will depend on your unique investment goals and the strength of your current investment portfolio. But, there are a few general moves you can make to immediately increase what you’re able to earn on your property.
Here they are.
Focus on Retaining Your Albuquerque Tenants
One of your biggest expenses as a rental property owner is tenant turnover. The vacancy cost is disruptive enough, but you also have to spend money on maintenance, keeping the utilities on, cosmetic upgrades and updates, and marketing for your new tenants.
You can easily spend thousands of dollars between tenants.
Avoiding turnover will save you money. Keeping good tenants in place will ensure that rent continues to come in consistently and your property enjoys some consistency.
Focus on tenant retention by establishing good relationships with your residents, responding right away to maintenance, and providing a pleasant rental experience. Keep your rent increases reasonable and market-based. You’ll find keeping tenants for longer than a single year’s lease adds up to more money in your property.
Drive Up Rental Value with Improvements and Upgrades
What inspires a tenant to pay more for a rental property? It helps to have a desirable location. It also helps to offer a modern, updated home that has all the conveniences tenants are looking for. A few minor renovations can drive up your rental value and lead you to higher ROI.
These renovations do not have to be expensive and complicated. Focus on small changes that will get the attention of great tenants and increase what your rental home is worth. We like:
- Fresh paint.
- New carpet or hard surface flooring.
- Fresh fixtures like new faucets, switch plate covers, and drawer pulls.
- Better lighting, inside the home and out.
- Tech updates such as video doorbells and smart thermostats.
- Attractive, low-maintenance landscaping.
Make these updates when you do find yourself in a turnover period. You’ll find your rental rate is higher, your vacancy rate lower, and your tenants highly qualified.
Welcome Pets into your Albuquerque Rental Home
If you’re not already allowing pets into your home, consider welcoming them now. Allowing pets will increase your ROI in a number of key ways:
- Less vacancy. There are a majority of tenants with pets looking for rental homes. If you don’t allow pets, you’re eliminating a large chunk of your potential tenant pool. That means you could wait longer to get your home occupied with good tenants.
- Lower turnover. Tenants with pets are more likely to stay in place than tenants without pets. They don’t want to go through the effort of finding another pet-friendly property. They don’t want to pay a new pet fee, either.
- Increased income. You can charge a pet fee. You can also charge pet rent. This adds to your revenue every month.
Pet-friendly properties need a strong pet policy and a robust screening process. It’s worth it to allow pets, however, because it means higher ROI.
These are just a few easy recommendations we have for you. If you’d like a customized plan for increasing what you earn, contact us at Bruni Karr Agency.