How to maximize rental property returns in Orlando
We have compiled several tips for landlords seeking ways to increase rental property returns. To boost profits, landlords should mitigate risks and maximize rental income. Keep reading to discover proven ways to make more from your rental property investment.
#1: Hire a property management company
A property management company will save you time and money. They handle the day-to-day operations and help you optimize rental property income, fill vacancies, and minimize risk. Property management companies also mitigate risks by keeping up to date on the laws and changes in the laws, protecting you and your investment property from lawsuits.
Related resource:
What to look for when hiring a property management company
#2: Maintain the property
Take steps to prevent normal wear and tear damage, such as installing durable flooring. Take care of minor repairs routinely and respond to maintenance requests from tenants as soon as possible. This practice will prevent tenant turnover and lead to increased profits.
Related resource:
The importance of rental property maintenance
#3: Get insurance
In most cases, having insurance is required in COAs in Florida. But even when it is not, we suggest having insurance to protect your investment. Landlord liability insurance prevents expensive legal fees in the event of a lawsuit. Home insurance covers the value of your investment property. You can save on home insurance by selecting a policy that does not insure the renters’ belongings.
#4: Take advantage of tax breaks
Familiarize yourself with authorized expenses for tax deductions. Some of the most common deductions for landlords are:
– Property depreciation
– Mortgage interest deduction
– Repairs and improvements
– And property taxes
#5: Incentivise long-term leases
Long-term leases offer stability and decrease turnover costs. Incentivizing long-term leases by providing a lower monthly rate for 1+ year leases will generate steady income and reduce vacancy.
#6: Know your target tenant
Tailor what your property has to offer to the needs and wants of your target tenants. Based on local demand, offer popular amenities such as high-speed internet access, a dog park, in-building laundry, etc. These tailored offerings will attract more demand for your rental property, leading to better occupancy rates.
#7: Offer popular add-ons
Increase your revenues by offering popular add-ons to your tenants for a monthly or annual fee, including parking spaces, garage space, storage, and allowing pets for an additional fee. Tenants will be happy to pay more for extras they want, and add-ons will create additional sources of income.
Disclosure
It is important to keep in mind that you must abide by your COA (or HOA) guidelines. Be sure to reference your COA’s policies regarding lease terms, insurance, pets, etc.
Takeaway
The most successful landlords seek to mitigate risks, take advantage of tax breaks, minimize tenant turnover, and make strategic improvements to increase value. Be sure to determine upgrades based on what is popular amongst your target tenants. If you implement all these tips for landlords, you are guaranteed to maximize your rental property income.
Need help managing your rental properties?
Rental Heroes has you covered. We can support your real estate investment goals by providing high-quality property management services in Orlando and the surrounding area.
Our local knowledge helps us manage hundreds of units across Central Florida, and we’re committed to doing everything we can to keep your tenants happy and your real estate investment running smoothly.