A good Santa Rosa 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.
You should feel like you have the necessary strategies for success when it comes to earning as much as you possibly can.
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 investment property.
Competitive and Profitable Pricing for Higher ROI
Both the real estate and the rental markets have been competitive, and right now, rental values in Santa Rosa remain high. You can charge more than you’ve been charging and still find a great pool of tenants willing to pay your price, especially when your property is well-maintained and in a great location.
The demand for rental homes remains high, and that means you’ll be able to charge higher rents. But, you don’t want to set a rent that’s too high.
Be strategic about your rental value, especially if you’re thinking about long-term earnings and tenant retention. Vacancies will hurt the return you earn on your investment property, and it will be nearly impossible to recover the money you lose on an empty property. 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.
Overpricing your property can be expensive. Today’s tenants are pretty savvy, and they understand the rental values in Santa Rosa. Make sure your property is priced competitively 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. You attract and retain better tenants. You limit vacancy. You create stability and a recurring and consistent rental stream.
Consider this when you’re setting your rental rate at renewal time, too. Good tenants will stay in place when they know that they’ll pay more for renting a new home in Santa Rosa. You should always raise your rent when you renew the lease with your current tenants but don’t increase the price so much that you motivate them to look elsewhere.
Better Marketing Means Better Rental Results in Santa Rosa
You may think about marketing as a function of leasing your home, and it is. But, the way you market your property also impacts what you earn on that property.
Your marketing plan will determine how quickly you’re able to rent your home and how qualified the tenants you attract tend to be. This matters.
With a strategic marketing effort, you can reduce vacancy loss. You can weed out unqualified tenants. You can also give prospective renters an excellent reason to schedule a showing. When your marketing photos are professional and you provide video tours with your listing, you’ll gain more interest. When you mention that you’ll consider pets in your listing, you’ll expand your pool of prospective renters.
Use technology when you’re marketing your property. There’s no reason to spend time and money uploading photos to a dozen different rental sites. Syndicate that listing. Utilize self-showing technology. Make sure you have an online application ready.
Most importantly, follow up when prospects reach out to you. Don’t lose tenants by ignoring those phone calls and messages that concern the home you have for rent. Be available. Your ROI depends upon it.
Screen Santa Rosa Tenants Rigorously
You can easily maximize your ROI with better tenant selection.
When you identify, place, and retain high-quality residents, you know that the rent will be paid on time consistently every month. You can expect that there will be less vacancy loss, fewer turnover costs, and no real threat to the condition of your rental home. A well-qualified tenant means you don’t have to worry about the cost of eviction or the frustration of chasing down late rent payments. Your property makes money because it doesn’t lose money.
When you rent your home out to excellent residents, you will also have someone helping you maintain your investment by taking care of it, keeping it clean, and notifying you immediately if something needs attention. Good tenants lead to more money for property owners because they’re reliable, responsible, and they don’t lead to extra liability or risk.
Bad tenants, however, will have the opposite effect. They will deplete your ROI. They’ll cause property damage – sometimes in excess of the security deposit you collect. They’re unlikely to pay rent on time. They’ll have a new excuse every month. Tenants who are not screened can cost you money.
To find the best possible tenants on the market, you have to make your property attractive to them. Market your home well and screen your tenants carefully. The ideal tenant will be financially responsible and have a clean, positive rental history. Check for past evictions and any money owed to former landlords.
Focus on tenant retention, because that also improves your ROI.
Attracting good tenants is important, and retaining them is even more important. When tenants renew lease agreements year after year, you’re saving yourself from expensive vacancy and turnover costs.
Establish and Enforce a Rent Collection Process
Maximizing your ROI requires a consistent and on-time rent collection process.
The first step in getting the rent paid on time is ensuring you have a professional and positive relationship with your residents. Communicate openly and transparently with them, and let them know what your expectations are for on-time rental payments.
Put together a rent collection process and share it with tenants before they even move into your home. You should outline it in the lease agreement and you must enforce it consistently every month. Good rent collection policies include:
- How much rent is due (including any pet fees or other costs)
- When rent is due and whether there are any grace periods for rent to be paid (when is it officially late?)
- Late fees and other consequences, including eviction
- How to pay rent
Be flexible with rental payment methods if you want your rent to come in consistently and on time. Online rental payments are usually the easiest for both owners and tenants. You’ll have more on-time payments. Be flexible, though. If you’re willing to accept rent in a variety of ways, you’re more likely to get your payments in on time. That’s good for your ROI.
Protect Santa Rosa Property Values with Preventative Maintenance
You can’t really maximize your ROI without a solid maintenance plan. Preventative maintenance is critical to increasing what you earn because it reduces the expense and the chaos of unexpected maintenance emergencies.
Repair costs are rising and it may be tempting to put off those minor repairs. But, smart investors know that taking care of minor repair issues right away will save money and time by preventing larger or emergency disasters. Be responsive to repair requests. Focus on the routine repairs that seem like no big deal but are actually increasing your ROI.
Preventative maintenance is necessary, but more than that, it helps you earn more on your rental property.
- Have your HVAC system serviced once a year
- Get your gutters cleaned out
- Have someone take care of landscaping on an annual basis
- Don’t forget pest control
Get an idea of when your roof and your appliances will need to be replaced. Preparation leads to higher incomes.
Invest in Upgrades and Improvements for ROI
Renovations increase rental values.
These upgrades can be as minor as switching kitchen cabinet hardware, installing new modern fixtures, or changing light bulbs. If you want to, you can go all in and change out the carpet for hard surface flooring. Add a fresh coat of paint or install some pretty backsplash in the kitchen. Think about energy-efficient, stainless steel appliances and new countertops. These things would really get the attention of great tenants and increase your rental value.
Consider in-unit laundry. Provide some tech upgrades like smart home devices or video doorbells. Even minor renovations and improvements lead to more money in the short and long term.
Santa Rosa Property Management
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. We understand the strict California rental laws as well as federal fair housing laws. We know how to collect and return security deposits and we can help prevent eviction.
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.
Let’s talk about how we can help you maximize what you earn. Please contact us at Prestige Real Estate & Property Management. We manage homes in Sonoma County, including Santa Rosa, Windsor, Sebastopol, Petaluma, and Rohnert Park.
