These expert tips can increase the bottom line of your Florida rental property. The goal of owning a rental property is to make money, so you must do everything to maximize your profits. With 35 years of experience, we can tell just how to get it right.
Maintain your property to increase its rental bottom line.
Caring for your property may incur upfront costs, but it pays off in the long run. Invest in preventative maintenance to keep the property in good condition, and improve its curb appeal. Keeping the house in good shape will also encourage your tenants to do the same, which in turn reduces tenant-turnover costs. If you encourage your tenants to avoid damage, then they can expect a refund of the security deposit in full. This makes for happy tenants. And happy tenants write positive reviews about your business.
Timely property inspections can help identify and fix emerging problems. By meeting building codes, you can minimize the risk of injury and expensive lawsuits. All this saves you money. Maximizing property value defines your future property valuation.
Screen tenant applications.
To make sure you find a tenant who pays rent on time and takes care of your property, you should follow a thorough tenant screening process. We recommend doing the following things:
- Meet prospective tenants to get to know them better
- Insist on a rental application even if an applicant needs to pay the charges
- Obtain and review tenant credit reports
- Conduct thorough background checks
- Contact employers to verify an applicant’s stated income
Insist and accept a written lease agreement only.
A Florida lease agreement is a document agreed upon between a landlord and tenant for the renting of commercial or residential property. A formal lease agreement helps avoid tenant conflicts and expensive legal battles by setting terms in writing. It is an excellent way to legally establish each party’s rights and obligations.
Effective rental lease agreements specify the exact rental terms. These include tenant details, lease tenure, rental value, and agreement dates. They must also include specific terms and conditions for owning pets, use of facilities, and what costs are covered by each party, such as gas, electric, and Wi-Fi usage. In the absence of a formal rental agreement, the landlord may end up covering costs that you expected the tenant to cover. Contrary to what you may be told, oral agreements are insufficient, especially for short-term tenancies. It becomes one person’s word against another.
A signed Florida lease is an important consideration for increasing the bottom line of your Florida rental property, by minimizing legal risk (and cost).
Persuade good tenants to renew their leases to increase the bottom line.
Why bother holding on to your good tenants? A smart way to maximize profits is to hold onto good tenants. Because they pay rent on time and take care of your property, on the other hand, bad tenants make your rental investment risky. There’s the risk of legal trouble, eviction, and damage to your property. Extensive damage to a property can result in costly repairs and more prolonged vacancies. Besides, the risk of not receiving rent payments can hurt your cash flow.
Another reason to hold on to good tenants is that finding new tenants can be time-consuming. By minimizing tenant turnover, you can also minimize the time wasted to create a listing, screening prospective tenants, and sign a new lease. Not forgetting the time and costs of completing repairs, cleaning, and repainting your rental property to make it rent-ready.
Maximize opportunities to increase your rental price.
Analyze the market around your property to understand why similar units in your neighborhood are listed at the price they are. Is it due to better appliances or location? Or are they better maintained?
Updating the rent price is a good way to make the most of your rental income, however, it should make sense in your rental market. Pricing your rental property out of the market could result in long vacancies and economic losses. If you have recently renovated your property, then you should increase your rent price. The same holds for new appliances, HVAC, or a deck. All these are great opportunities to increase your asking rate.
Make these simple landlord tasks part and parcel of your property rental business. And enjoy the benefits that come with increasing the bottom line of your Florida rental property.
How we can help to increase the bottom line of your Florida rental property.
Real Property Management Premier provides professional, trustworthy property management services, from tenant screening to leasing to maintenance to evictions. Whether you are an investor with multiple rental properties or have a single rental, we have the services and solutions to increase the bottom line of your Florida rental property. Follow our expert tips to increase the bottom line of your Florida rental property.
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