Expert Tips to Increase ROI On Rental Property Investments

Rental property owners can generate ongoing revenue from rental properties in the Virginia Beach and Hampton Roads areas, but how do they know when a property generates a healthy ROI (return on investment)?

What if a rental property isn't delivering the ROI you need?

Monitoring and improving returns on each property in your portfolio is crucial to reach your financial goals. If a property isn't performing well (or perhaps a good revenue generator could do even better), applying the right strategies can help.

Keep reading to learn expert tips on how to increase ROI on rental property investments!

Top Property Upgrades to Attract Quality Tenants for Better ROI

Before and After of Man Painting Roller to Reveal Newly Remodeled Room with Fresh Light Green Paint and New Floors

The very foundation of maximizing returns on a property starts with making it irresistibly appealing to potential tenants.

Modern flooring, such as vinyl plank or tile, does wonders. These materials provide durability while lending a contemporary look, offering potential tenants the allure of everyday living.

Furthermore, while aesthetics play a significant role, practicality is equally vital. Investing in energy-efficient windows can lead to reduced utility bills, providing a dual benefit of comfort and cost savings for the tenants.

Additionally, bathrooms are often considered a property's crown jewel, and there's a good reason for this. An elegantly updated bathroom with modern fixtures and finishes can drastically elevate a property’s appeal.

Likewise, the heart of a home — the kitchen — demands attention. Integrating stainless steel appliances and introducing durable countertops can be the determining factor in clinching a rental agreement with new tenants or renewing a property with current renters.

Boosting Tenant Retention Also Increases ROI

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A property's success isn't solely determined by its initial allure but also by how long it can keep its tenants content.

How can property owners keep good tenants for more than one lease term? Addressing maintenance requests promptly is at the core of this. Timely responses and resolutions to these concerns show professionalism and care, thereby fostering trust.

Moreover, integrating annual property upgrades keeps the living space feeling rejuvenated, which can be a silent yet effective tenant retention strategy. Regular rental property inspections are not just about oversight but about foresight. These inspections can unearth potential issues, allowing them to be addressed before they escalate into costly repairs.

In addition, regular communication, whether it's about property-related updates or simple seasonal greetings, can establish a warm rapport with tenants, making them more inclined to stay longer. Clarity is key in all property-related policies to prevent misunderstandings, which can sour the landlord-tenant relationship.

Remember also: the exterior of the property is as important as the interior. A well-maintained lawn or garden can serve as a daily source of pride for tenants, contributing to their overall satisfaction.

In today's digital age, providing online payment options can greatly ease the rent payment process, further endearing you to tech-savvy tenants.

The Importance of Keeping a Clean Property

Low Section Of A Person Cleaning The Carpet With Vacuum Cleaner In Living Room

Cleanliness is not merely about visual aesthetics — it embodies the quality and standard you uphold as a property manager.

Therefore, regularly scheduled cleaning and maintenance sessions are paramount to attract and retain quality tenants. A clean property also translates to fewer maintenance requests and longer tenancy durations since residents will appreciate and take care of a well-maintained living space.

Clean, well-maintained properties reduce maintenance costs and keep tenants happy long-term, boosting your returns.

Why You Should Offer a Home Office

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The modern work landscape is rapidly evolving, with remote work becoming a staple for many since COVID and looking to the future. A home office, therefore, is not just an amenity but a necessity for many renters in the Virginia Beach area.

Offering a dedicated space or even a small nook for a workstation can significantly bolster your property's allure. This seemingly small feature can justify higher rents, as it caters to a pressing contemporary need.

New Hardware Gives Properties a Refresh

Half opened door into the cozy home interior

Sometimes small, inexpensive details can have a significant impact on your property's aesthetic appeal and how much you can charge for rent. Something as seemingly insignificant as door handles, cabinet knobs, or light fixtures can markedly elevate a property's ambiance.

Investing in new hardware provides a fresh, contemporary look and feel, making the property more appealing to potential tenants. The beauty of such upgrades lies in their cost-effectiveness, delivering a significant ROI boost without major expenditure.

Replacing Appliances Improves Rental Property ROI

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Appliances form the backbone of a functional home. While the upfront cost of replacing them might seem daunting, the long-term benefits are undeniable. New, modern appliances are more efficient and less prone to breakdowns, reducing maintenance calls.

Their energy efficiency translates to reduced utility bills, a selling point for potential tenants. Moreover, the allure of sleek, modern appliances can be the cherry on top for tenants torn between multiple properties.

Resident Benefit Packages Benefit Your Returns

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A better rental experience can encourage tenants to stay for another lease term.

Elevating the tenant experience can be achieved through resident benefit packages. Offering perks like discounted gym memberships, cable packages, or house cleaning services can warrant higher rent prices.

These benefits, while enhancing the tenant's quality of life, can also foster loyalty, increasing the chances of longer tenancy durations.

Tenant Screening Reduces Risks

Property Manager screening tenants

Choosing the right tenant is arguably as crucial as having the right property. Leveraging tenant screening processes ensures you secure responsible tenants, mitigating risks of potential damages or unpaid rent.

By leveraging comprehensive tenant screening services, property owners gain an in-depth understanding of a prospective tenant, including their rental history, financial stability, and overall responsibility. This process not only aids in pinpointing individuals who have a proven track record of being dependable renters but also plays a pivotal role in warding off potential challenges.

The challenges that come with bad renters can range from delayed rent payments, frequent maintenance requests due to negligence, or even significant property damages that can lead to expensive repairs.

A meticulous tenant screening approach is an investment in peace of mind, guaranteeing that your property is in trustworthy hands and ensuring that potential risks are minimized.

Proactive Lease Renewal Processes Maximize Income

Legal document Lease Renewal Agreement on paper close up

Proactive lease renewals serve a dual purpose: they reduce the uncertainty of vacancies and save on costs associated with finding new tenants.

Starting the process early — at least 2-3 months before the lease term ends — can help property owners keep good tenants with a renewed lease. Waiting too close to the lease's end can increase the chances that the tenants you want to keep have already signed a new lease at a different property and plan to move out.

A strategic approach to increase tenant retention is offering lease renewal incentives. Whether it's a minor rent discount or an upgrade to a property feature, such incentives can be the nudge a tenant needs to commit to another lease term.

Pet-Friendly Properties Can Enhance Rental Property’s ROI

Red Shiba inu dog and red cat napping on gray couch in modern room with green wall and potted plants

The decision to introduce a pet-friendly policy can be transformative for your bottom line!

Many potential tenants view pets as family, so accommodating them can significantly broaden your tenant pool. While there's an associated risk of potential damage to the rental property, implementing a nominal pet deposit or a monthly pet fee can safeguard against potential repairs and simultaneously boost your ROI.

However, to balance accommodation with management, real estate investors must set guidelines about the size and type of pets allowed becomes essential. With the right pet policies and screening process, allowing pets in your rental properties is an excellent way to improve returns.

Consider Automating Your Processes

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Infusing technology and automation into Virginia Beach property management can reap immense benefits for real estate investment property owners.

Automated tenant screening services offer rapid yet comprehensive checks, ensuring that you're entrusting your property to reliable hands. In addition, online maintenance request systems can streamline the reporting process, making it easier for property owners and tenants.

Digital rent payment options minimize late payments, ensuring consistent cash flow. In a time when travel can be restrictive, virtual property tours can be an ideal solution, allowing you to attract tenants beyond the confines of Virginia Beach and Hampton Roads.


Get More Tips for Boosting ROI On Rental Property Investments

Enhancing the ROI on rental properties in the Virginia Beach area is a blend of astute upgrades, tenant-centric initiatives, and efficient property management. With a strategic approach, your property can be both a dream home for tenants and a lucrative asset for you.

If you'd like more in-depth insights into things you can do to improve returns for your rental properties, request a free copy of "10 Things You Should Do to Increase the ROI for Your Rental Property."