One of my favorite things about real estate as an investment is that it is never stagnant. And as my motto goes, “strategize to maximize”, you can repeatedly optimize your investment strategy to up your ROI. That way not only you are continuing to generate a passive income, but you can optimize your cash flow and improve your property management to increase your returns. Here’s how:
1. Renovate, and Upgrade
When you have the opportunity to renovate your property, do it. Well thought-out upgrades can shorten the time your rental property is on the market and allow you to charge a higher rent.
The best upgrades are simple, inexpensive ones that have the most impact on the desirability of the property. By improving aesthetics, you can increase the livability of your property.
For example:
- New cabinet doors – quality wood, new knobs and paint in a trending color will make your kitchen look like a million bucks
- Paint – Paint is that fresh, facelift your property needs – just choose the right colors
- Pressure Washing – this is a great long-term investment. Use it on a regular basis and your property will always be spick and spam
- A washer/dryer – you can recover the cost of a washer/dryer in a few months, as this is a major selling point for tenants
2. Reassess Your Investment Strategy
If you’ve been renting your property for a while, it may be time to reassess your strategy and see where you could be missing out on potential gains. Reviewing how much you rent should be done on a regular basis – and it’s important to strike a balance between how much you can charge and how much tenants are willing to pay.
You can figure this out by seeing what the market numbers are or consult someone like me to help you run a rental market analysis who can also help you ensure you’re familiar with rent control laws.
If you have extra properties, you can rent out, this is the best option to take your investment to the next level. Or, if you can invest in another property – I can help you do that as well. Understanding key metrics related to real estate ROI can help you expand your portfolio and your cash income.
I can also help you diversify your real estate portfolio – as this will give you the best strategy to increase your wealth. From single family homes to long term rentals, commercial properties and more – there are many ways I can help you make a plan to succeed in the long term.
3. Improve Your Financial Management
Your real test is to make sure that what’s coming in, is more than what’s going out. Poor financial management could lead to more overheads than necessary – putting you at an avoidable loss.
Knowing where to cut costs is important. I’ve helped clients connect with vendors that could help them lower their cost and increase their ROI overall. And for those with multiple properties, I can connect you with a great property management company that takes care of your real estate business from A to Z.
Final Thoughts
There are many ways to increase your return on investment in real estate. This is a changing market and knowing the ins and outs could save you time, money and help you avoid pitfalls so your business can continue to grow. If you’d like to know more about different solutions, contact me today and let’s book you a consultation!
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