It's easy to lose track of the reasons why you decided to become a property owner when you get into the nitty-gritty of cash flow for your business. Landlords have many tasks to juggle, so it only makes sense that something might slide by accident.
To maintain consistent rental property cash flow and ROIs, many factors need to be front of mind for successful real estate investors. These factors are the hidden reasons why some property owners make significant profits and others don't see the returns they expect. As a property investor, making the right choices is often more complicated than simply answering, "how much can I rent my house for?" Our Ellenton, Florida property management team can help you avoid these ROI killers that can sneak up on property owners before they know it.
1. Extended Vacancy Periods
One of the most significant ROI killers is not having a renter in the property at all times. If you wait until after someone moves out to start looking for the next renter, you can experience weeks (or months) without income from that property.
Successful property owners know the importance of maximizing revenue, and often that begins with reducing vacancies! Working with a property management company can help you develop a process to start marketing and screening a new renter as soon as you know that the current renter isn't renewing. That way, you can reduce vacancy times to a few days while conducting the make-ready process before a new resident moves in. Avoiding months of lost revenue and improving your vacancy rate can help boost returns!
2. Maintenance Failures
A professional property manager will tell you that poor maintenance practices can cost you dearly if you try to cut corners with DIY fixes or spend too much by using the wrong professionals to handle the repairs. On the one hand, renters will move out if they feel unsafe in a rental home that's not maintained well enough.
It can be challenging to choose the repair professionals wisely without getting charged an arm and a leg without experiencing quality repairs or prompt services from overpriced contracts. Spending too much on repairs lowers rental property returns, so what's the solution to delivering excellent maintenance services without blowing your budget?
The best property managers deliver a network of maintenance vendors with the right combination of quality services and reasonable pricing. Ellenton, Florida property management companies have strong insights into which repairs are needed to keep a property safe for those living there and how to find the best resources to avoid maintenance failures.
3. Not Managing Expectations
Another ROI killer is not having the right ROI goals to make property ownership the right plan for your long-term income plans. Rental property ownership can be a big money-maker, but without clear and managed expectations, you may find yourself disappointed in your returns.
Managing expectations is easier with the right property management professionals to guide you! A property manager listens to your "big picture" goals, then implements best practices to make sure every aspect of caring for properties and rentals gets you closer to your goals. From smaller details like managing maintenance or rehab projects and coordinating contractors and deadlines to helping you find your next investment property, the right rental management professionals make sure your expectations are met.
4. Overpromising and Underdelivering to Renters
Property managers know that being an excellent landlord is the best way to overcome many renter-related issues, like high turnover rates, late rental payments, and complaints. When tenants are unhappy, they won't stick around for a new lease term. In some cases, residents might withhold rental payments until property owners handle overdue repairs.
Failing to take good care of renters and rentals can lead to revenue loss and low returns. To deliver what renters expect (and what you promise), work with a property management company in the Ellenton area!
5. Communication Challenges
Poor communication with renters and contractors can lead to significant income loss. Residential property managers can tell you that vendors won't trust you, your renters may not feel motivated to keep up their contracts, and your reputation will suffer in the rest of the industry—making it challenging to find good residents or contractors to support your real estate investment business.
Good communication has many benefits for your bottom line! Becoming an Ellenton rental property owner who stays in contact with renters, sends updates and offers clear information when renters need to make decisions, and treats vendors with respect leads to better returns on your investment.
An Ellenton Property Management Helps Avoid ROI Killers
Figuring out "how much can I rent my house for" is only the tip of the iceberg when it comes to hitting ROI goals. As a property owner, you benefit from having a team at your side that has seen plenty of investors make ROI-killing mistakes and helped them turn their returns around. An Ellenton property management team like Gulf Coast Property Management is here to help! Reach out to learn more about how we help property owners maximize returns with our property management services.
Ready to calculate your ROI? Use our free Rental Property ROI Calculator!