Grow Rental Property Income
The year of 2023 could be tough for many businesses, however the rental property business is considered a recession proof industry. It should do well.
Property owners can be confident of some success, but only the best and most tech savvy pros will excel in generating profits. And profit is the purpose of being a property manager.
When properties and tenants are managed professionally, profitability is the likely outcome.
Let’s Grow Your Profits
By making higher rent yields and lower expenses a priority, you’re creating the mindset to keep your business profitable from here on in.
While opportunities for fixer uppers, jaw dropping rent increases, and big capital gains tax savings might be gone with the wind, there are plenty of better ways to make solid, sustainable profits from your property holdings.
First, let’s look at 5 main ways you can grow your revenue and then afterward, uncover 10 tactics to ramp it further:
5 BIG Ways to Grow your Profit:
- manage your portfolio yourself and use property management software to automate payments and maintenance, help educate, and to connect with and keep tenants involved with you
- be adventurous and buy more and better quality properties wherever they’re located in the US, Canada or Central America
- think long term with tenants and home quality – make key improvements based on what renters really want or are impressed with
- buy apartments in luxury multifamily condo buildings in the right neighborhoods and locations such as near key intersections in walkable neighborhoods
- optimize your online marketing to grow your renter connections and be able to ask for the highest rents possible
Investing in Your Property Management Business Means Spending
Reducing costs is not in this mix. Cutting costs is the first sign of a business heading into a downward spiral to nowhere. Finding the best properties, being strategic, improving the tenant experience, and spending smartly creates more potential revenue. Buyers and renters will pay a premium for a good property owned by a classy landlord.
Do It Yourself, Professionally
Unless you have hundreds of properties, a small business landlord can’t get rich hiring a property management firm.
The potential lack of care and mismanagement risks from a low priced property management firm could be a big threat. Property management firms can erode the tenant relationship because they won’t create the same respectful and close relationship with your tenants. They tend to depersonalize the tenant/landlord relationship.
12 Ways to Ramp up your Rental Property Revenue
- buy more rental properties – buy higher quality properties with better long term tenants is where the big profits are (we’ll cover property selection in another post)
- study the rental income markets in each city – don’t be afraid of buying and managing properties in other lucrative cities, towns or neighborhoods in the US or abroad
- manage the portfolio yourself – hire an assistant for bookkeeping and accounting, software admin, and become your “mini me.” Consider letting them do the lease rental agreement signing, and onboarding, so you have more time to get the key stuff done.
- think long term – buy quality properties with potential in recession-proof regions is wise at this point and which no one else is doing
- upgrade with tech amenities – check out some new services which tenants really want
- buy a fixer upper in a low priced region – one risky high return property is something you could manage well enough
- increase the number of properties gradually – buy in bulk the home improvements renters and buyers actually care about including solar panel systems, energy efficient appliances such as tankless water heaters, big windows, beautiful kitchens, and nice flooring.
- conduct internet marketing really well – and grow the number of connections who want to live in your units – that increases demand and minimizes periods where a unit is vacant. Use a blog and facebook page as a portal for all your tenant connections. It will deliver ever-increasing value through the years ahead. And you can use paid advertising more effectively and get better ROI.
- minimize vacancy causing issues – understand more about why units become vacant because it is a serious loss
- visit your tenants and ask them what they’re disappointed with in the unit and neighborhood and which neighborhoods they like and give them some LED light bulbs and a bottle of wine – show that you care!
- be an awesome landlord – stay in touch, ask what’s not working well, and allow them to express themselves and show respect for them as a person. You recruited and chose your tenants to be your customer and they’re important to your company’s profitability.
- sell your lowest performing property and buy a better one. Rotate the losers out. It will be too much work to keep that unit going. Just not worth it.
Which Revenue Building Tactic Will Work Best for You?
As you choose each of these improved tactics as part of a long term revenue and tenant focused strategy, you’ll discover which performs best to help you grow your rental yields.
Let us know what you’ve found to grow your revenue the most. We’d love to hear from you.
Good luck with your rental property management portfolio and choosing the best property management platform to make it all go smoothly in 2023. If you haven’t take the ManageCasa property management software for a test drive, then try it now while you’re in the mood. You’ll discover why simple makes so much sense.
See also: Apartment Rental Market | Cloud Software | Software for Landlords | Homes For Rent | Apartment for Rent | Tenant Screening for Landlords | Accounting Software | Canadian Housing Market | Toronto Housing Market | Tax Reduction Strategies | Increase Investment Property ROI | Improve Property Cash Flow Property Management Business | Start Property Management Company | Property Management Software Reviews