Some landlord portfolios are basic rentals either a 2bd , 2ba or a 3bd, 2ba that is just a simple unit. These are the unit types that can be the best rentals.
With the following steps landlords can make adjustments on basic rentals to improve profits:
- No glass top stoves no more. Coil top only. These last longer.
- Optional: No food disposals or dishwashers in units. Still put in microwaves.
- No water/ice makers in fridges. Too many repair bills drain profits.
- Paint the walls, baseboard and trim a light beige color, semi-gloss exterior paint. Semi-gloss is so much easier to clean and keep clean. Ceilings are white eggshell, not flat but not anything shiny — just make it so it can be cleaned easily. Doors should be semi-gloss white. If you have to repaint, the painter can go in there with a sprayer or roller and repaint the whole thing in a day. Also, all of the rentals should have the same color inside so that 5 gallon bucket of paint can go anywhere; no more labeling cans of paint with the property address.
- No carpet any more, tenants trash carpets. Tile everything but you can rethink that as well. It seems the grout always looks horrible, sealed or not. Thinking of changing over to a nice new vinyl solutions. Nice to walk on, warmer to sit on and easier to manage. There is a pink adhesive you can use to install; it’s removable. You paint the floor with it, let it dry and then apply your rolled vinyl. If you didn’t place it right, simply lift it up and reposition. The nice thing is that if a section gets damaged, you can cut that section out and a new piece with the same pattern and it’s a perfect fit; you are hard pressed to see the repair and if water spill on the area, it’s still sealed. Don’t forget to buy a bit extra so you have pieces for repair.
- Big change here! Do quarterly inspections. Not only should you do them, tell potential tenants you do them right there on the application. If you do this, many tenants will be on guard and fewer damages will be the result?
- If something needs fixing, it is fixed , it’s paid for by the tenant right away instead of a bunch of small repairs having to be done when they move out and they easily add up to the point that the security deposit doesn’t cover it.
- Everyone says they are so clean but you know it’s not so. With quarterly inspections the filth can’t accumulate. Try to give only 24 hours notice for the inspection and not more. Maybe they have no time to clean up. You should ask to see the two most commonly dirty places that untidy people have in their home. Especially the kitchen. Why do you do this? If you have a bad tenant, you need to know as soon as possible.
- A scheduled pest service is almost a requirement for those that are renting out single-family homes. Many tenants will not notice pests or simply won’t think anything of it, and could easily leave you with a complete infestation by the time they have departed. Pest control costs are very low compared to the amount of money they’ll save you in the long run, especially when termites are involved.
- Risk Transfer — Make your tenants are responsible for certain “reasonable” small maintenance items and be sure this is in writing on the lease. This includes such items as broken windows, torn screens, clogged drains, lawn care, and others. The tenants responsibility should be reasonable and should you not require that tenants be responsible for normal wear and tear, but give them ownership of items they are responsible for, and make it clear on the lease clause.
- In this business, it doesn’t pay to put off preventative maintenance; it will only make a fix more expensive down the road. Also, by jumping on routine repairs and replacements and quickly addressing tenant requests, you will ultimately reduce low vacancy rates. Your tenants will be pleased with the consideration and prompt responses from you and the overall condition of their residence. This means money in your pocket and a body in your property.
- Keep tabs on your insurance coverage. While you definitely want to have adequate insurance for you rentals, it’s worth reviewing your coverage periodically. Make sure the property is not over-insured and that you are not spending more money on premiums than necessary. Have you updated the agent on any changes to the property? Can you raise deductibles to lower costs?
- It’s also a good idea to suggest that your tenants purchase their own renters insurance policy. That may reduce the risk of the tenant pursuing the landlord for lost possessions in the event of a disaster, like an apartment fire. Renters insurance also protects tenants from suffering a catastrophic financial loss which could prevent them from paying rent.
Not every situation is the same. Use care when you implement what is written here. However a plan to lower expenses is a big tip to increase profits.
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