The property management company you hire should do everything it can to increase your investment’s net operating income (NOI). Just getting by is not good enough. You want to increase your property’s value, and there are several ways a property management company can help you do that. Here are 7 of them.
- They should only fill your units with quality tenants.
- They should steadily bring rent rates in line with the market.
- They should standardize how water, sewer and other utilities are charged (and make them the tenants’ responsibility).
- They should tighten up your lease agreements so it’s clear who is responsible for what.
- They should optimize the maintenance process for all of your properties.
- They should evaluate your operating expenses and look for ways to cut costs.
- They should develop reports to help you make better data-informed decisions.
It’s important to note that none of these actions in and of themselves are particularly drastic, and there’s no magic formula for instant success. When taken together, however, trend lines across the board tend to steadily improve. That means not only does cash flow increase, but the NOI does as well – thereby increasing the value of the overall portfolio.
In sum, your success as an investor should be just as important to the property management company you hire as it is to you. By taking the steps mentioned above, slowly but surely, your cash flow and NOI will also increase.
If you need help addressing performance issues with your rental properties, please don’t hesitate to get in touch with us at RL Property Management. We take great pride in being able to help our clients improve their returns and look forward to helping you, too.
