Purchasing a multi-residential property and collecting rent is not enough to get an interesting return on your investment. You need to become a pro-active and involved property manager and landlord in order to boost your ROI. Here are some of the mistakes that might be keeping you from getting a higher return on your investment:
- Be picky about who you rent your property to. Take the time to obtain credit reports and to perform background checks before choosing tenants. Asking for references from an employer or previous landlord is another efficient way of finding good tenants.
- Do not purchase the first multi-residential property you find. Factors such as the location of the property or the amount of repairs needed to bring the building up to norms will have a direct impact on your ROI.
- Don't wait too long before having small problems fixed. Something as trivial as a small leak can lead to humidity problems and even mold. Take action quickly if a problem is detected and have professionals perform inspections regularly.
- Timing is another important factor that will impact ROI. Purchasing a multi-residential property when the demand is high is not a smart investment. Your ROI will be much higher if you wait for prices to drop.
- Failing to treat your properties as a business could be costing you money. You will get better results if you keep track of your expenses and re-calculate how much you charge for rent when needed.
Becoming a good property manager and boosting your ROI can take time and require you to learn more about investments and how to maintain them. You should contact us if you need assistance in finding the right property or are not sure how to manage a current investment.