At Shine Residential Management, we work with our owners to increase their rental income on a monthly basis and maximize the long-term performance of their investments. We take care of all the day-to-day logistics involved in the leasing, managing, and maintenance of rental properties, but we’re also thinking about the value of your investments and how we can help you grow your portfolio into something impressive.
Today, we’re talking about what it takes to improve your Killeen investment property’s performance. Some of our recommendations are pretty simple, and others require a strategy.
Rental values have risen in Killeen, and so have property values. The market itself is helping your ROI right now. But, markets shift and you need to be prepared to maximize your return on investment (ROI) no matter what kind of economic conditions are driving consumer behavior when it comes to housing.
Pricing and ROI for Killeen Investment Properties
Our rental market is strong, and that means most owners can price their properties on the high end of what the range looks like for homes similar to yours and in your neighborhood.
Pricing impacts ROI because if you price too high, those likely vacancy days will cut into what you earn. If you price too low, you’re stifling your own potential and not earning what you could.
The right price will attract the best tenants, and placing and retaining those great tenants will also drive your ROI even higher.
Always be strategic about your rental value, especially when you’re thinking about how to improve the performance of your rental property. Vacancies are a problem for your earnings. They also leave your property at risk.
Consider what you want to earn in both the short and long term when you’re establishing a new rental rate at renewal time, too. You’ll earn more money retaining your existing tenants than you will turning over your property and looking for new tenants.
Give your residents a good reason to stay in place. Offer a rental rate at renewal time that’s higher than what they’re currently paying, but also competitive in the greater Killeen market. If your tenants know they can find a lower rent price elsewhere, they’re more likely to leave. If they know they’re having a good rental experience and they’re likely to pay less by staying in place, they’ll renew the lease for another year.
You should always raise your rent when you renew the lease with your current tenants, this, too, is an important part of maximizing ROI and helping your property perform. But, don’t increase the price so much that you motivate them to look elsewhere.
Why Marketing Makes a Difference in Property Performance
Marketing has a serious impact on your leasing process and the speed with which you place tenants.
The right marketing strategy allows you to:
- Reduce vacancy loss by getting qualified tenants in place quickly.
- Weed out unqualified tenants. When your marketing hints at what you require to approve a renter, prospective tenants will know immediately whether they have a chance.
- Attract good tenants to your property. With an effective listing and postings in the right places, you’ll motivate interested tenants to schedule a showing.
What makes a good marketing plan?
Professional-level photos. Concise descriptions. Information such as rental amount, screening criteria, and whether pets are allowed. Consider a video tour. Always include your contact information.
Take marketing seriously when you want to increase what you earn on your home. The most important thing you can do while marketing your rental home in Killeen is follow up when prospects reach out to you. Don’t lose tenants by ignoring those phone calls and messages that concern the home you have for rent. Be available. Your ROI depends upon it.
Improving Killeen Tenant Quality
Your choice of tenant will absolutely impact your property’s performance and, ultimately, your ROI.
Highly qualified, well-screened residents will pay rent on time every month. They will take pride in how the property looks, keeping things cleaned up and attractive around the inside and outside of your property. They’ll respect the terms of the lease. They’ll take care of their pets. They’ll communicate with you promptly when repairs are needed, and they’ll be willing to work with you on taking care of the home.
An excellent tenant means you don’t have to worry about the cost of eviction or the pain of chasing down late rent payments. Your property makes money more easily.
Good tenants lead to more money for property owners because they’re reliable, they’re stable, and they don’t lead to extra liability or risk.
The wrong tenants not only raise your blood pressure, but they’ll also deplete your income and stall your ROI. They’ll cause property damage – sometimes in excess of the security deposit you collect. They’re unlikely to pay rent on time. They’ll have a new excuse every month.
Tenants who are not screened well can cost you money.
To find the best possible tenants on the market, you have to make your property attractive to them. Screen those applicants carefully. The ideal tenant will be financially responsible and have a clean, positive rental history. Check for past evictions and any money owed to former landlords.
Once you’ve placed a tenant, don’t forget how important it is to keep that tenant. When you implement a tenant retention plan, you take steps toward improving your ROI. When tenants renew lease agreements year after year, you’re saving yourself from those expensive vacancy and turnover costs. This will go a long way towards increasing the returns you earn on your investment property.
Maintaining and Improving Killeen Rental Properties
Maintaining your Killeen rental property is an important part of earning more money on it.
You cannot maximize your ROI without a solid and responsive maintenance plan. Preventative maintenance is critical to increase what you earn because it reduces the expense of unexpected maintenance emergencies.
Repair costs are rising, and it’s unpleasant to have to find a plumber and pay those vendor invoices. However, it will cost you more to ignore the work that needs to be done.
Don’t put off those minor repairs. Taking care of them right away will save money and time by preventing larger or more emergency disasters. Be responsive to repair requests. Not only does it show your tenants that you care (thereby increasing tenant retention rates), but it also protects the condition of your investment.
Earn more and help your property perform better with a dedicated schedule for preventative maintenance:
- Have your HVAC system serviced once a year.
- Clean your gutters.
- Landscape your property regularly.
- Create a contract for regular pest control.
- Inspect the roof as well as the plumbing and electrical systems during every turnover period.
- Track the performance of your appliances and replace them instead of repairing them when they break down over and over again.
To really earn money on your Killeen investment property, you have to think about more than maintenance.
You also need to focus on property improvements. Upgrades increase rental values.
The updates and improvements can be cost-effective things like switching kitchen cabinet hardware, installing new modern fixtures, or changing light bulbs. If you want to, you can go all in and change out the carpet for hard surface flooring. Consider in-unit laundry. Provide some tech upgrades like smart home devices or video doorbells. Even minor renovations and improvements lead to more money in the short and long term.
Collect Rent Consistently
If your money isn’t coming in when you expect it to, you’ll have a hard time maximizing your ROI. You cannot be satisfied with the performance of a property if you’re not earning consistent rent on it.
This requires a consistent and on-time rent collection process. The best way to ensure you’re getting the rent paid on time is by establishing and maintaining a good relationship with your residents. Communicate openly and transparently with them, and let them know what your expectations are for on-time rental payments.
Good rent collection policies include establishing in your lease agreement:
- How much rent is due
- When rent is due
- Whether there are any grace periods for rent to be paid
- The exact date that rent is considered late
- Late fees and other consequences, including eviction
- How to pay rent
Online rental payments are usually the easiest for both owners and tenants. You’ll have more on-time payments.
Killeen Property Management Partners
Perhaps the most effective way to earn more money on your Killeen rental property is to work with a professional property management team.
Your property managers will help you earn more income, rent to better tenants, and be proactive when it comes to maintenance. Property managers ensure rent is collected on time, keep you in compliance with the Texas Property Code and all other state, federal, and local laws and regulations, and understand how to effectively inspect, maintain, market, and care for your rental home.
We take care of tenant retention and tenant relationships. We have access to the best and most cost-effective vendors.
If you’d like to hear more about how you can earn more on your Killeen rental property, please contact us at Shine Residential Management. We may have some ideas specific to you and your investment property.
A property management company based in Harker Heights, Shine Residential Management cares for exceptional single-family homes throughout Central Texas, including in Killeen, Temple, Belton, Copperas Cove, Salado, and Georgetown.
