As a San Jose real estate investor, your goal is to increase the amount of income you earn on your rental property. You want to increase the amount of rent you collect and the long-term return you earn on your investment.
Some factors are outside of your control. The market largely dictates how much your property is worth on both the rental market and the sales market. But, you can take a few strategic steps to ensure you’re maximizing the amount you earn on your investment home.
Keep Your Property Well-Maintained
The condition of your home has a major impact on the amount you can charge in rent. Good tenants will be willing to pay more for a home that’s clean, functional, and attractive. Before you rent out the property, give it a detailed inspection and take care of any repairs or replacements that are needed. Once a tenant is in place, make sure you’re responsive to their repair requests and maintenance needs. Even minor issues should be taken care of right away; this will ensure your property doesn’t fall into disrepair or accumulate deferred maintenance, and it will also increase your tenant retention rate by keeping your residents happy.
When you provide a high-quality home, you can ask for and receive higher rents.
Screen for Better Tenants
If you don’t think your tenant selection has an impact on what you earn, think about what can happen with a bad tenant. You’ll waste a lot of time chasing down late rent payments and the day might come when your tenant stops paying rent entirely. Then, you’ll have to spend money on an eviction and continue to lose money while your tenant lives in your home for free. Or, you could be left with property damage that exceeds the amount of your security deposit.
A good tenant earns you more by paying rent on time, taking care of your home, and following the terms of your lease. That good tenant is also likely to stay for a longer term, saving you money on vacancy and turnover costs.
Make Modest Improvements and Upgrades
When you have a clean and well-maintained property, there’s no need to renovate it or make costly improvements. However, a few minor updates and upgrades will give your home a fresh, modern look and allow you to charge more in rent. If your appliances are aging, for example, don’t repair them. Instead, consider replacing them with energy-efficient, stainless steel models. Install new showerheads in the showers and put shiny, new faucets and hardware on all the sinks, drawers, and cabinets. Replacing old, worn carpet with laminate or tile is worth the investment. Not only will you earn more in rent, you’ll also attract tenants who are looking for low-maintenance floors.
The single most important thing you can do to increase your rental income and your investment’s stability is to work with a professional San Jose property management company. When you have experts taking care of things like marketing, tenant screening, property pricing, and maintenance, you’ll save money on expenses and earn more ROI.
We’d love to tell you more about how we can help. Contact us at Cornerstone Property Management.