Every investor wants to achieve different things when they invest in Charleston rental properties. Maybe you’ve purchased a home that you plan to live in yourself one day when you retire, or perhaps you’re looking to earn the highest possible rents now. Perhaps you bought a property hoping it will increase in value over the next 10 years. Whatever your investment goals happen to be, increasing the return on your investment (ROI) is always going to be a priority.
Sometimes, it’s easier said than done. The performance of your investment property will largely depend on the market and the economy. Certain things, however, are very much in your control, and those are the things that will ensure you’re able to maximize what you earn.
To increase your ROI, you have to do more than find a good tenant and raise your rent reasonably every year that the lease is renewed. Keeping your properties well-maintained and making cost-effective upgrades will help you earn more on your Charleston rental.
The most important thing you can do, however, when you want to increase what you’re earning is to work with a professional Charleston property manager. You’ll find that with professional and expert help, you’re able to spend less and earn more on your investments.
Here’s what you need to do when you’re trying to get the best ROI on your Charleston investment home.
Accurate Charleston Rental Values
Vacancies will compromise the return you earn on your investment property, and it will be nearly impossible to recover the money you lose when your property is left unoccupied for too long. One of the biggest mistakes we see investors make is to price their rental property too high. We understand wanting to earn as much as possible in monthly rent; you don’t want to devalue your property or lose what you could potentially earn. We’re also dealing with a market that has seen a dramatic increase in rental values. That’s great news for your ROI. You can afford to keep your rents competitive and still increase what you earn.
Today’s tenants are pretty savvy, and they understand the rental values in Charleston. Make sure your property is priced accurately and that your rental value is aligned with what similar homes in your area are renting for. A well-priced property will always earn more ROI.
While we’re on the subject of rents, make sure you’re collecting your rent on time.
This impacts earnings and ROI, and therefore, you need a consistent and on-time rent collection process. The best way to ensure you’re getting the rent paid on time is by establishing and maintaining a good relationship with your residents. Communicate openly and transparently with them, and let them know what your expectations are for on-time rental payments. Make sure they have multiple ways to pay, including online. Electronic payment methods are convenient and easy, and they almost guarantee that you’ll receive rent when it’s due.
Marketing and Curb Appeal Impact Charleston ROI
Every rental property earns more with high quality tenants. Good tenants will help you earn more in the short and long term by:
- Paying rent on time
- Taking good care of your home
- Following the terms of the lease agreement
- Avoiding property damage as well as deferred or unreported maintenance
- Renewing their lease agreement year after year
To attract these tenants, you need a strategic marketing plan. You also want to offer an attractive and comfortable home for rent so that tenants are eager to lease it.
Take clear, appealing marketing photos before you list your rental home. The pictures will be what first attracts the attention of potential renters. List your property everywhere; on rental websites, on the MLS, on social media – any place where you know tenants are looking for their next home.
The faster you rent your property, the more you earn. This requires a marketing plan to reach the best possible tenants in Everett.
Curb appeal counts, too. Provide an attractive, welcoming home that looks like a place great tenants would want to live.
Preventative Maintenance and Home Values
Maintenance is a serious part of increasing your ROI. While no landlord or investor enjoys taking on maintenance expenses, taking care of small repair issues right away will save money and time by preventing larger or emergency disasters.
Be responsive with repair requests.
Not only does this show your tenants that you care (thereby increasing tenant retention rates), it also protects the condition of your home. You will have less to do during tenant turnovers. There will be fewer emergency calls. You won’t have to worry about the added expense of deferred maintenance.
Preventative maintenance is necessary. Have your HVAC system serviced once a year, get your gutters cleaned out, and have someone take care of cleaning and landscaping on an annual basis. All of these things will increase the value of your investment, resulting in more money for you.
Charleston Property Management Increases ROI
One of the most reliable ways to increase your ROI is by working with a professional property management company. A good property manager will save you money on maintenance, help you find and keep great tenants, and ensure you’re not making any expensive legal mistakes. Your property management company has the tools and resources to lease and manage your home in more profitable ways. It won’t take long to notice that you’re earning more and spending less.
When you’ve partnered with a management company, you can leverage technology, relationships, and expertise. You’ll lose less money on vacancy, turnover, and maintenance.
We would love the opportunity to talk further about how we can help you earn more on your Charleston rental property, increasing ROI and decreasing costs. Please contact us at Meridian Residential Group. Located in North Charleston, our team provides both single-family and multi-family property management in the Charleston, SC area, including in North Charleston, Summerville, Goose Creek, and Moncks Corner, among other cities.