When we talk about simple updates, we mean things like refinished countertops, new floors and attractive fixtures. For a little money up front, these updates will pay for themselves and help you earn more on your investment.
When you make things on your property easy to maintain, you have an advantage when it comes to keeping tenants and earning a higher return on your investment. When the landscaping looks good and is well maintained and all the systems and appliances in the house are clean, fresh and functional, you’re really in a strong position.
Take a look at the local market and make any necessary adjustments. For example, utility bill backs can bring in some extra income for property investors if there are charges you can make. Implementing a policy where any tenants with pets have to pay a pet rent every month can also increase your return.
Figure out if you should be charging for things like landscaping, shared utilities and garbage. These things will help you maximize your profits every month.
Taking care of regular, routine and seasonal maintenance is critical to getting the best return on your investment property. You always want to avoid big ticket items that are going to cost a lot and rob you of cash flow. If you make the minor fixes now instead of waiting for them to become major problems,you’ll be saving yourself money. For example, if you notice the paint chipping or peeling on the exterior door, that’s a repair that will cost you less than $100. If you don’t take care of that preventative maintenance, the costs will grow and you’ll end up needing a whole new door because the paint will get beyond the point of repair.
Finally, always look at your refinance options. You should be taking advantage of lower rates and maximizing your ability to keep your mortgage payment low. If you have any questions about how to bring in more cash flow and get the best return on your investment property, please contact us at Fox Management, Inc., and we’d be happy to help you.