If you're a commercial investor who owns one of the twenty million rental properties found in the United States you're likely always looking for ways to improve your profits.
That being said, it can be a thin line to walk. If you simply raise rent without any warning you're likely going to lose good tenants. But if you keep your rent low you're going to start bleeding money.
That's why it's important to engage in proper property performance optimization. These are strategies you can take that will maximize profits on any rental properties you own. That way you can get enough money to focus on your next Chattanooga commercial property investment deal.
Know What to Charge for Rent
One of the biggest ways that properties lose their profit is by undercharging for rent. There's no denying that it's easier to keep rent at the same price. It doesn't rock the boat with tenants and it requires less work.
However, market conditions are always changing. If you're putting in the research and the work you likely know you should be charging more.
One way to make things easy is by using rental analysis. This looks at everything from your expenses to the property neighborhood to come up with a fair price.
Upgrade Your Property
Consider adding improvements to your properties, like a community pool, workout center, or energy-efficient upgrades. This can help for two reasons. First, you can attract a wider tenant pool when you include amenities like this.
Second, you can use them to charge more for rent. That being said, they will require a bit of an investment upfront to increase this tenant engagement.
Screen Your Tenants
You might be wondering how screening your tenants can increase your profits. The answer is that they help prevent evictions. Few things can drain your profits faster than evictions.
Not only do you lose out on rental income for months, but you also need to pay for court and lawyer costs. What's worse, they're quite common. It's estimated that there are nearly 3.6 million eviction cases filed each year.
By doing a background check on tenants you can potentially avoid eviction scenarios entirely.
Hire a Property Manager
Unless being a landlord is a full-time job for you, it can be hard to optimize the performance of every aspect of your property. That's why you should consider hiring a property manager.
These professionals help ensure that every aspect of your rental situation is optimized for maximum profit. After all, they benefit from getting more out of your rental properties just as much as you do.
And improving your profits isn't the only benefit they can provide. They also make your life as a landlord so much easier which allows you to focus on building your leasing portfolio.
Want Property Performance Optimization? Contact PMI Chattanooga
We hope this guide helped you learn more about the benefits of property performance optimization. Here at PMI Chattanooga, every aspect of our services is designed to save you money.
That starts with a full rental analysis and extends everywhere from our marketing to our accounting. So if you want to learn more about how we can help you maximize profits on your real estate properties, get in touch with us today.
