As a residential property management company in Charleston, one of the things we are always thinking about is how to earn more money for our investor clients. So today, we want to talk about how to maximize the return you earn on your investment, or your ROI.

Get the Property Leased Quickly

The most important thing you can do to earn more in the short term and the long term is to keep a property leased and get a property leased quickly. Properties that sit vacant are what we call “money pits.” If the property is not generating rent, you are not going to be maximizing your ROI. That is the number one thing to think about; avoid vacancy and turnover costs by making sure you get the property leased and keep your excellent tenants in place.

Name the Correct Rental Price

You must also price your property correctly based on the market. Otherwise, your property will endure a longer than desired vacancy period. A lot of companies and even private landlords will come up with an analysis for a rental value that is simply not realistic. When you price your property too high based on what you think it’s worth or what you think you need, it could be vacant and not earning any rent for 60 days, 90 days, or even longer. That’s going to drive your ROI way down. Follow market rents.

It’s important to aggressively price the property. When you’re working with a professional property management company that knows the market, there should never be an instance where a property is sitting more than a month without a tenant. Don’t spend your time looking at what active listings are priced at; you want to know what rented listings were priced at.

Protecting the Condition of Your Investment

Another benefit to having a resident in the property, besides for simply generating revenue, is that if something goes wrong in a vacant property, there is no one to report it. That deferred maintenance can lead to more expensive problems. Expenses will increase, and so will headaches. Make sure you are paying attention to routine and emergency maintenance. Put a preventative maintenance plan in place, and make sure your tenants know it’s important to report issues as soon as they occur.

Seasons Matter in Rental Real Estate

calendar - thumbnailThe time of year is crucial. Typically, March through mid-August in the Charleston area are the prime months for renting properties. Once you get the property leased, then it is all about keeping the resident in place. Every time you have turnover on a resident, it’s very costly for a property management company and an owner. Make sure you have a retention plan in place. When you do, you’ll have your residents in place and caring for the property longer, and your ROI is going to go up.

We are strategic with our pricing, marketing, and tenant retention. If you’d like to talk more about your rental property and how we can increase your ROI, please contact us at Charleston Home Rentals.