As a San Diego landlord, you count on the consistent and recurring rental income that arrives every month. You’ve placed good residents who can be counted on to pay rent on time, and you know your property is steadily increasing in value as you collect that rent.
Rents are high right now, and occupancy levels are as well. But your expenses are growing too, and you should always be thinking about how to maximize the income you’re earning. This will help you get the most out of your investment property.
We have some ideas on how to maximize your rental income and have a more profitable investment experience.
Make Renovations and Improvements
Improving your property makes it worth more. Residents are willing to pay more in rent when they’re living in a property that’s been upgraded and recently renovated. This doesn’t mean you have to invest in a full renovation; but, making some cost-effective improvements will deliver better rents. Here are some ideas on where to start:
- Paint. The cost of paint might make you feel like touch-ups will do enough. But, if you invest in fresh paint on all the walls in your rental property, you attract better residents and higher rents.
- Floors. If you want to keep carpet in your rental property, consider neutral colors and durable grade fibers. You can also go a step further and replace your carpet with hard surface floors. Laminates and faux hardwoods look great, they’re easier to maintain, and they’ll absolutely maximize what you’re able to earn in rent.
- Kitchen and bathrooms. New appliances are great, especially if you want to increase your rental value. But you don’t have to go that far; by installing backsplashes or new faucets and hardware, you’ll give your kitchen an updated feel. Put in a new mirror and better lighting in the bathrooms.
Maximize what you’re able to earn by making improvements like these. You don’t have to invest a lot of money, and you’ll easily earn back whatever you spend on higher rents.
Focus on Retaining San Diego Residents
When you avoid vacancy and turnover costs, you effectively maximize the rent you earn. Long term residents are more valuable to you and your property. It provides stability, consistent income, and the assurance that your residents are taking good care of your investment.
Losing a resident when the lease ends means you have to deal with a vacant property and pay out-of-pocket for maintenance, cleaning, and landscaping. Then, you have to spend money to market the property again and place new residents. Not only are you losing rental income, you’re also spending money between lease terms.
Retain your residents by providing an exceptional rental experience, responding right away to maintenance and repair requests, and listening to them when they have concerns or need help.
Keep Up with Maintenance
No resident will want to live in a property that’s quickly deteriorating. When they pay rent, they expect that their appliances will work and they’ll have reliable air conditioning in the summer. Prioritizing maintenance maximizes your rental income in two important ways:
- It preserves the value and condition of your asset.
- It contributes to your resident retention plans.
Keep your property looking great and functioning properly. It’s the only way to continue attracting residents and raising rents. The more effort you put into maintaining your property now, the fewer problems (and lost rental income) you’ll have later.
Preventative maintenance is especially important. It reduces the risk of emergency maintenance needs, which are always expensive and frustrating.
Working with great vendors will help you be more responsive with maintenance, and also maximize your rental income. Put together a list of preferred vendors and contractors who know you and your investment property. You’re hoping to avoid those middle-of-the-night emergencies, but if one does occur, you don’t want to be looking for a plumber at 2:00 a.m. You’ll want to have someone reliable and responsive who will answer your call.
Develop working relationships with licensed and insured professionals before you need them, and listen to their advice and recommendations when it comes to caring for your property. You’ll earn more in rent and spend less on repairs.
Partner with San Diego Property Managers
Your property manager is your secret weapon when it comes to maximizing what you earn in rent on your San Diego investment property. There are multiple ways in which your management partner will help you earn more. With industry expertise and a deep understanding of the local rental market, you can expect:
- Shorter vacancy times thanks to strategic marketing and expedited leasing.
- Better resident screening with fair housing complaint practices.
- Higher rents, based on accurate data about what comparable properties are renting for.
- Lower maintenance costs, thanks to preferred relationships with vendors.
- Resident relationships that promote retention.
When you’re working with professional property managers, you’re also protecting yourself against the risk that often comes with renting out properties, especially in California. There are strict laws in place around rent control, eviction, security deposits, background checks, Section 8, and habitability. Avoiding expensive legal mistakes with the help of your management company saves you a lot of money and easily maximizes what you earn.
Managing rental properties can be challenging at times, but it’s a challenge that most investors and landlords are willing to take on because of the rent that’s earned and the long term return on investment (ROI) that’s possible.
Following these tips can help maximize your rental income and make sure that your investment pays off in the long run. By keeping up with renovations and improvements, retaining residents, and prioritizing maintenance, you can increase the chances of having successful and more profitable tenancies over time. Work with a San Diego property manager, and you’ll have an easier time earning more rental income and maximizing what you earn on the entire investment experience.
We would be happy to work with you to maximize the value of your real estate investment. Please contact us at Walters Home Management for all of your San Diego property management needs.