.webp)
According to data from Global Property Guide, the average rental yield in the US is 6.10%, but with the right approach, you can improve on this.
Various factors will affect how much you can make from a rental property. Some of these are outside of your control, so it's important to do what you can to maximize your income.
In this guide, we'll take a look at some real estate asset management best practices that can help you get the most out of your real estate investments. Let's get started.
Find and Retain Tenants
Tenants are the source of your income, so you need to know how to find them. Effective marketing is crucial, especially in a tough market where tenants have a lot of options. Use enticing listings and high-quality images to make your property as appealing as possible.
Prioritize tenant relations to ensure there are no issues. If your tenants are happy, they'll be far more likely to renew their leases rather than move out at the end of their tenancy. You'll then spend less time with vacant properties that aren't generating any money.
Stay on Top of Maintenance
Property maintenance is crucial for success in the real estate industry. All properties naturally degrade with time, so you need to maintain yours if you don't want them to lose value. A routine preventative maintenance schedule with regular inspections is ideal here.
If any problems come up, take care of them as soon as you can. Neglected issues will only grow with time, so dealing with them sooner will help you keep expenses down.
On top of supporting property values, this will keep your current tenants happy, increasing the likelihood of lease renewals.
Reinvest in Your Properties
There are all kinds of improvements you can make to your properties. Upgrades will make them stand out from other properties in the market. You'll then have an easier time finding tenants and will typically be able to charge more for rent.
Some common upgrade choices include:
- Fresh paint
- Kitchen/bathroom renovations
- New flooring
- Upgraded light fixtures
- Improved landscaping
- Smart technology integration
- Upgraded security measures
Some of these are more expensive than others, so always look at the costs. Think about the potential profit from a specific upgrade to determine if it's a good choice or not.
Work With a Property Manager
A property manager understands the ins and outs of real estate management and will have much better insights into your local market. They know how to implement these best practices as well as others to help you succeed. They can take on various responsibilities such as:
- Rent collection
- Tenant screening
- Inspections
- Lease negotiations
- Tenant communication
One of the best ways to ensure you get a good ROI on your properties (especially as your portfolio grows) is to hire a property manager.
Effective Real Estate Asset Management
Working with a reliable property management company can help ensure all of your rental properties are managed efficiently so you can reach your investment goals.
DJC Management provides professional real estate management services throughout the Greater Portland area. We have over 15 years of experience and can tailor our services to meet the exact needs of every client.
Check out our residential property management page to see more about what we can do for you.
