How did your investment properties do in 2023? Looking to maximize the ROI on your rentals in 2024? Whether you are a DIYer or retain the services of property management company, the following five tips will get you on the road to a rising ROI.
Strengthen tenant relationships. Check the communication channels available to your renters. Are they able to ask questions, report maintenance issues, and vent complaints or compliments easily? Just as important, is the communication acknowledged and issue(s) resolved in a timely fashion? A positive relationship with tenants helps with retention, increasing your cash flow.
Tenant screening. Congratulations! You’ve done an excellent job of marketing your rental and now have a large pool of applicants. The next step is to screen the potential tenants. Along with the usual employment checks, you’ll want to perform rental risk assessments and credit inquiries. Any shortcuts in this process will come back to haunt you. Guaranteed.
Be proactive with maintenance. You can see those stately oak tree roots buckling up the driveway, but do you know what they are doing to the foundation and pipes? You likely will save money, time, and heartache if you don’t wait for the foundation to crack or pipes to burst. Be mindful of the smaller repairs, too, as they grow into big ones. Big expensive ones. Proactive maintenance pays for itself.
Inspect properties on a regular basis. Don’t count on a tenant to report funky smells, leaking faucets, or broken deadbolts. It’s your responsibility to take care of your property. Schedule an annual property inspection today and be sure to let your tenants know when to expect it.
Take those tax deductions. Lastly, don’t forget deductions, and that means for this year and planning for next year. There are the standard deductions of expenses such as mortgage interest, property tax, operating expenses, depreciation, and repairs. If you receive rental income, according to the IRS, “You can deduct the ordinary and necessary expenses for managing, conserving and maintaining your rental property. Ordinary expenses are those that are common and generally accepted in the business. Necessary expenses are those that are deemed appropriate, such as interest, taxes, advertising, maintenance, utilities, and insurance.” Check with your tax professional to make sure you take all the eligible deductions and begin a conversation about strategizing for 2024.
There are many other ways to maximize the ROI on your rentals. If you’d like to learn more, call Place Tenants at 800-886-1193 or email [email protected]. We look forward to hearing from you.
