Financial instability is one of the number one sources of stress in America. Property is considered one of the most sound investments available, and many investors turn to property ownership to move from financial instability to financial freedom.
If you're just starting out, you may feel like you're losing more than you're earning. How can you start generating rental property income that creates more freedom?
We have the tips and tricks you need to increase profits, from improved accounting to frequent rental property inspections. Read on to learn more.
Get a Handle on the Numbers
When you're dealing with landlord stress, it can feel easier to look away from the numbers and hope for the best. To achieve financial freedom, you need to do a thorough audit of:
- Gross rental income
- Recurring expenses (e.g., mortgage payments and property taxes)
- Average cost of maintenance
- Additional expenses (e.g., marketing, rental community events, etc.)
Until you know where your money is going, you can't assess the room you have to cut costs and maximize profits.
Make More of Your Rental Property Inspections
One of the biggest expenses in rental property management is maintenance. One of the biggest reasons we see landlords requesting rescue services is that they can't keep on top of maintenance or don't have the budget for needed repairs.
To spend less on maintenance, you need to be proactive. Start by inspecting your rental units at least once per year so you can spot and fix small problems before they snowball. Use an online portal system so your tenants can report maintenance issues they notice between inspections.
Take the time to reassess the contractors you hire for maintenance. Build an arsenal of reliable vendors that charge reasonable prices for both scheduled and emergency services. Overpaying for poor-quality work is a surefire way to cut into your profits.
Aim for Tenant Satisfaction
Creating financial freedom as a property owner is a delicate process. It requires a combination of:
- Competitive but inflation-adjusted rental prices
- Smart spending to maintain your property
- Increased tenant retention
When your tenants resign their lease year after year, it protects you from the potential lost income that a vacancy can create. Plus, it spares you the need to pay for marketing and other turnover costs.
To retain your tenants, focus on improvements they actually care about. For example, tenants often report an interest in on-site laundry and gym facilities. The occasional investment in new amenities can go a long way.
Outsource Property Management to the Pros
Financial freedom is one thing, but what about passive income? Nothing grants a property owner freedom like the ability to enjoy their rental income without the hassle of hands-on property management. That's where 1st Choice Property Management comes into play.
1st Choice Property Management has been maximizing property investment profits since 1993. Our family-led team is made up of real estate professionals including brokers and agents that know Fort Worth real estate inside and out.
From rental property inspections to maintenance and beyond, we've got your back. Contact us and let's get started building your financial freedom.
