A good Denver property management company will do more for you than simply place tenants, collect rent, and schedule maintenance. A property manager who is really concerned with your success will help you make decisions and identify opportunities that will allow you to increase the return you earn on your investments.
If you notice that you’re not earning as much as you should, talk to your property manager about how to maximize the ROI on your Denver rental property.
These are some of the signs that will tell you changes need to be made in order to earn more on your rental home.
Vacancy Periods are Longer
Nothing will kill your ROI faster than a vacant property. If your rental home is vacant on the Denver market, something needs to be done to stop the loss of rental income and boost what you can earn. We have found that homes are slow to rent due to one of these common reasons:
- The price is too high
- The location is too remote on undesirable
- There’s a lot of competition on the market
- It’s the wrong time of year
There’s not much you can do about your property’s location. But you can ask your property manager to re-evaluate the rental value and the asking price. A property manager concerned with vacancy will also structure your lease agreement to ensure the home is vacant during the high rental season; usually spring and summer.
Updates and Improvements are Needed
Another sign that you could be maximizing your ROI is that your home is looking a bit run-down and old. You don’t want to lose money on rent or settle for subpar tenants just because your home isn’t as attractive and appealing as others on the market. You don’t even have to do a full renovation. Usually, some small changes like new paint, high-quality floors, or better lighting can make a huge difference. Invest in things that matter to tenants, such as landscaping and kitchens. Simply installing new faucets and hardware on drawers and cupboards can have a dramatic effect, and they aren’t expensive. Instead of repairing a 20-year old refrigerator, invest in a new one that’s energy-efficient.
Deferred and Emergency Maintenance Needs
Maintenance has a huge impact on ROI. If you’re noticing that things are breaking down at the property more frequently, it’s probably because your property manager isn’t paying attention to preventative and routine maintenance. Make sure you’re maximizing your property value by protecting the condition of the home. Deferred maintenance is always more expensive and time-consuming than preventative maintenance, so make sure your property manager knows you want even small repairs taken care of immediately. Schedule annual inspections and service checks, especially for things like the heating and cooling units, the water heater, and the roof.
These are just a few of the telltale signs that might indicate you could be earning more on your Denver rental property. If you have any questions or you’d like any help increasing your ROI, please contact us at Walters & Company.