When you want to maximize revenue on a Mesa investment property, you need to pay attention to several things before and during the rental process. We have a few specific ideas we’d like to share with you that can help you earn more on your rental property.
Set the Correct Rental Price
First, we need to set a rental price that is competitive. We do this by searching rental sites the same way that a renter would. We want to take a look at what homes are going for in the area. So we search Zillow and Craigslist and others to figure out what the asking prices are. Keep in mind asking prices will trend 5 to 10 percent above what houses actually rent for. You can also see the homes your property is competing against. When setting the right rental price, we like to set our prices slightly below the market. Just a $25 discount can generate more calls and interest. This slight discount along with our higher level of service will make your house rent faster and your tenants stay longer.
Prepare Your Home for the Rental Market
Getting your home rent ready is the next step in earning more revenue. The house needs to be clean, fresh, and feel like it’s in good shape. Here’s a test. Drive up to your rental house. Sit in your car in the street and look at the driveway – do you see oil stains? Is the paint on the front door faded, are blinds missing in the windows, is the porch light burnt out? When you walk inside, what do you smell? Is it dog or smoke or funk? If any of these are true, work on maintenance and cleaning so that your house is ready for someone to move in. Tenants have their pick of rental houses out there, and they will shop around for the one that is clean and fresh. Spend the time and money to make your home rent ready.
Reduce Vacancy and Turnover
Strive to keep vacancy and turnover down, because these expenses are hard to recover. Providing effective service to tenants is a great way to reduce vacancy and avoid turnover. Make sure you’re treating your tenants properly. Get repairs done expertly and quickly. Be flexible with your payment terms within reason. Forgive a late fee now and then if they are good tenants who are working hard to pay rent on time. If you do receive notice that a tenant is moving, ask why the tenants are leaving and try to get them to stay! Offer to perform some deferred maintenance, a free month of rent, or lower the rent a little bit. It will cost you at least that amount in turnover costs, so you earn more by keeping a good tenant in place.
These are just a few ways to maximize your revenue on Mesa rental properties or Mesa property management. If you have any questions, please contact us at Beehive Property Management, serving the Phoenix area and outlying cities like Gilbert, Mesa, Peoria, and Glendale.