Evicting a tenant can cost a landlord up to $10,000! Add that to regular property expenses, including maintenance, taxes, and marketing. Without a strategy, you won't improve your return on investment.
Instead of losing money, use these real estate asset management best practices to boost your ROI. With these tips, you can reduce property expenses and ensure success!
Follow Local Laws
Neglecting to follow local, state, and federal housing regulations can lead to fines and expensive lawsuits. To avoid these property expenses, review Florida's tenant-landlord laws. They mention:
- Small claims lawsuits
- Tenant protections against retaliation
- The landlord's right to access the property
- Termination and eviction rules
- Required landlord disclosures
- The tenant's rights to withhold rent
- Security deposit limits and returns
- Rent rules
Keep track of new regulations. If you're struggling to adhere to constantly changing rules, consult a property manager. They'll help you remain compliant, minimizing expenses.
Insure Your Real Estate Property
Insuring your real estate property now will protect your best interests and wallet later. Consider coverage from:
- Fires
- Hurricanes
- Other natural disasters
Require tenants to have rental insurance before they move in. If a tenant has a dog, ask them to get pet insurance in case there's an incident.
Find, Screen, and Retain Tenants
Maximize your earning potential by improving your occupancy rate. Develop a marketing strategy to reach renters online.
Avoid choosing renters who may damage your property or affect your profitability. Otherwise, you may have to evict problematic tenants.
Invest in tenant screening services to avoid these expenses. Charge late fees when tenants fail to pay on time.
Retain your existing tenants to reduce the cost of vacancies, marketing, and tenant screening. Your property manager can help increase satisfaction rates and renewals.
Prioritize Planned Maintenance
Schedule routine inspections for essential systems, including the:
- Plumbing
- Electrics
- HVAC
- Roof
You can get ahead of small repairs before these systems break down. Start building an emergency fund to cover these expenses. Your property manager can schedule planned maintenance and gather competitive bids to save money.
Manage Real Estate Finances
Review your real estate finances to find ways to save money. You can consult a property management company to determine how your investments are performing.
They can help you improve your profit margins. Make changes to how you operate regularly to improve your ROI.
Hire a Property Management Company
Partnering with a property management company can help you operate efficiently. Choose a company that uses property management software. This will reduce human error through automation.
Allow tenants to use an online portal to submit inquiries and rent payments. Your property manager can keep up with requests for you.
Improved Real Estate Asset Management
To ensure better real estate asset management, don't apply these tips alone. Instead, partner with a property management company. Rely on their years of industry experience for improved rental income optimization.
Our team at PMI Best Assets is part of the number one property management company in the US. We can maximize your profitability using proven strategies.
Trust our track record of success (and the awards that prove it!). Contact us today to improve your return on investment.
