You own a rental property, so there’s a pretty good chance that you’d like to make as much as you can in income – but how do you do that when you’re an absentee owner (that just means you don’t personally manage the property or that you don’t live in the same community as your property)?
How to Optimize Rental Property Income When You’re an Absentee Owner
For most income property owners, it makes sense to work with a West Palm Beach property management company that handles finding tenants, tackles day-to-day issues, and manages rent collection and disbursement. Typically, this is the best way to optimize rental property income – and here’s how successful landlords with property managers do it.
Setting the Right Price for Rent
Setting the right price for rent is essential. A good property manager knows his or her market, and knows how to set rent prices appropriately. If your rent is too high, you won’t attract tenants; if it’s too low, you’re leaving money on the table. When your property manager evaluates your house or condo, he or she will compare it to similar properties that are renting right now to determine the right price for rent.
Choosing Improvements Wisely
Making improvements to your rental unit is great – as long as those improvements are paying off in what you’re charging for rent. Some things don’t count as improvements, such as fixing the roof so it doesn’t leak; however, some improvements that can justify a higher rent price (and that can bring in tenants willing to pay that higher price) can include upgrades to flooring, cabinetry and countertops in the kitchen, and fencing the yard. It’s best to talk to your property manager about which improvements will pay off, because a lot of factors come into play (including the neighborhood and other homes’ rental prices).
It’s essential that you get the right tenants in your property. Otherwise, you could end up dealing with late rent – or worse, no rent at all – and damage to your property that you’ll have to come out-of-pocket to repair. That’s not to say that screening tenants before offering them a lease is 100 percent effective, but it does mean that the better-screened your tenants are, the less likely you are to have problems that cost you cash in the long run.
Maintenance Done Right
If you’re not careful, you could throw away unnecessary money by working with the wrong maintenance and repair contractors. You want to work with the most reputable, trustworthy companies – especially if you’re not there to check their work – and you want to get the best deals at the same time. Good property managers have developed relationships with the best contractors, including HVAC pros, roofers, plumbers, and even general repairmen to make sure they’re taking care of the properties they manage.
Working With a Tax Professional
It’s always worth talking to a tax professional. You need to make sure you’re filing properly and that you’re getting as many credits and concessions as possible when you’re filing your taxes and that you’re doing the right things during the year to earn them. As a property owner, it’s in your best interest to keep in touch with a tax pro throughout the year.
Do You Need to Talk to a Property Management Expert in West Palm Beach?
We can take the headache and hassle out of owning an income property. Call us right now at 561-766-2195 to find out how we can help optimize your rental property income and give you the peace of mind you need when you’re an absentee owner.