Don’t chase a unicorn. Make a plan, instead. Here are 5 smart decisions you can make today to boost your rental property’s net operating income (NOI) and experience less stress and anxiety along the way.
5 Ways to Increase NOI
- Ensure rent rates are in line with the market – One of the first places to start when evaluating NOI is income. What are you currently charging for rent, and is that competitive with the local market? Pull comps and see how your rent rates compare with similar properties. If you need help, talk to a local property management company.
- Standardize whenever and wherever possible – This becomes especially important as you scale, but even if you own just one rental property, institute clear and streamlined policies so that tenants are responsible for as many of the utility and maintenance expenses as possible (and be sure those responsibilities are detailed in the tenants’ lease agreements).
- Reduce your vacancy rate by leasing to good tenants only – Fewer vacancies mean more revenue and less expense. You’ll also reduce your turnover costs when you lease to high-quality tenants.
- Audit your operating expenses – Analyze past data to see where your greatest areas of spending are occurring. Then sit down and make a strategy to reduce them.
- Optimize maintenance – Investors should take the long view when it comes to their maintenance philosophy. Quality goods and materials that are more expensive upfront generally save you money in the long run as they last longer and require less labor and expensive repairs during their lifespan. When you think about a maintenance strategy to boost NOI, the cheapest and fastest is frequently not the smartest use of your money.
A sound investment strategy requires you to take in the full view of your rental property’s strengths and weaknesses and use that data to make good decisions. A professional property management company like ours at RL Property Management can help you save money and increase your property’s NOI by offering insightful reports, competitive data, and decades of expertise in the local market. Contact us today to ask your questions about investing in Columbus real estate.