Increasing NOI doesn’t require complicated computations or abstract algorithms. Anyone can do it with a sound strategy and insightful data to guide their decision-making
When it comes to operational expenses in particular, using past data to inform future investment decisions can have a big impact on a property’s overall net operating income. Below we’ll discuss several ways to reduce expenses and increase value.
Strategies to Reduce Rental Property Operational Expenses and Boost NOI
- Lease to good tenants – While not directly related to operations, who you lease to does have an impact on your bottom line. Good tenants cost less money. Why? Because they are more likely to extend their stay in your unit (and thereby reduce your vacancy rate). They are also less likely to damage your property or cause other problems that may lead to expensive repairs.
- Do as the data says – Operating costs consume a large portion of your monthly expense budget, and they’re likely to only go up, especially if you do nothing. Rising energy costs and inflation make managing the day-to-day necessities of property ownership in Columbus even more challenging. To control your spending while still offering a quality product to tenants, you must track your expenses diligently and evaluate that data regularly. Knowing where your greatest expenses are occurring can help you make better decisions going forward.
- Manage maintenance costs – Repairs and upgrades are necessary expenses that eat into your operational budget. Devise a strategy to streamline maintenance costs and optimize the way you spend and save on repairs.
Lastly, you should consider hiring a professional property management company if you’re interested in increasing NOI and reducing operational expenses. Despite it sounding counter-intuitive, hiring experienced professionals who know the market and industry best practices can actually help you save money. Many, like ours at RL Property Management in Columbus, will also manage and run reports for you which you can then draw on as you make ownership decisions going forward
To learn more about owning rental property in Central Ohio, get in touch with us at RL Property Management. We’ve been professionally managing rental properties in the greater Franklin County area for more than a decade and have the expertise and professionalism to help you get the most out of your strategic investment.