There are several ways to tell if a rental property will be a good investment. The best one by far, however, is to calculate its ROI.
One nice thing about ROI is that it's not a static metric. If the math isn't working out for you, you can still influence it in your favor. By applying the right strategy, reaching your ROI goals can be surprisingly simple!
Not sure how to make this happen? Start by checking out these property management tips every Pittsburgh landlord should know about!
Streamline Your Processes
The first step to rental business success is to streamline your management processes as much as possible. This allows you to get things done faster and with fewer mistakes. Here are some of the things you should do:
- Focus on high-priority tasks first
- Batch similar tasks together
- Set realistic deadlines
- Make to-do lists
Keep up With Market Trends
As far as rental property tips go, it always helps to keep an eye on the market. Dedicating some time to stay on top of industry news and trends can be a big help in making data-driven decisions.
You should also keep track of local laws. The industry changes quickly, and being compliant yesterday doesn't mean you're compliant today. For instance, are you familiar with the new rental requirements in Pittsburgh?
Stay Professional
Investment property management is all about professionalism. Treating everyone with respect will gain you the trust of tenants. That said, it's a balancing act: you need to be both friendly and firm.
A good way to achieve this is to set boundaries with your tenants while still respecting their needs. For example, you should know what maintenance issues are emergencies, and what can wait a little.
Screen Tenants Effectively
Another key piece of landlord advice is to try to minimize evictions. An eviction can be a big money sink due to lost rent and legal fees. The best way to avoid this process is to focus on finding good tenants.
In general, there are some red flags that most troublesome tenants share. Learning to identify them can save you a lot of time. Some of these red flags are:
- Low credit score
- Criminal history
- Bad rental history
- Lack of references
Consider Outsourcing
Landlords wear many hats, and not all of them fit. This is why it can make sense to outsource some tasks to a property manager. It allows you to ensure quality work while focusing on things you do well.
For instance, many landlords outsource their maintenance tasks. This can be essential for maintaining your property value and keeping tenants satisfied. Plus, it gives you a chance to learn helpful property upkeep strategies.
Maximizing Your ROI Through Effective Property Management
A good way to think of ROI is a key performance indicator. If your ROI is where it should be, your investment is likely bearing fruit. If not, try to maximize it by following the above tips or hiring an expert.
Need help with property management in Pittsburgh? At DeSantis, we've provided personalized services to hundreds of clients like you! Contact us here to get a free rental analysis or learn more about our services!
